| /X/    | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED  JUNE 30, 2009OR            |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934FOR THE TRANSITION PERIOD FROM _______________ TO _________________  |

| MARYLAND(State or other jurisdiction of incorporation or organization) | 52-2058165(I.R.S. Employer Identification No.)   |
|------------------------------------------------------------------------|------------------------------------------------------------|

| TITLE OF EACH CLASSCommon Shares, $.01 par value | NAME OF EACH EXCHANGE ON WHICH REGISTEREDNYSE Amex |
|--------------------------------------------------|----------------------------------------------------|

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Table of Contents 

TABLE OF CONTENTS

| PART I   | FINANCIAL INFORMATION                                                                                                                           |    |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|     |                                                                                                                                            |    |
| Item 1.  | Consolidated Financial Statements                                                                                                               |    |
|     |  Consolidated Statements of Operations for the Six Months Ended June 30, 2009 (Unaudited) and June 30, 2008 (Unaudited)               |  3 |
|     | Consolidated Statements of Operations for the Three Months Ended June 30, 2009 (Unaudited) and June 30, 2008 (Unaudited)                        | 4       |
|     |                                                                                                                                            |    |
|     | Consolidated Balance Sheets as of June 30, 2009 (Unaudited) and December 31, 2008                                                               | 5       |
|     |                                                                                                                                            |    |
|     | Consolidated Statement of Changes in Shareholders' Equity for the Six Months Ended June 30, 2009 (Unaudited)                                    | 6       |
|     |                                                                                                                                            |    |
|     | Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2009 (Unaudited) and June 30, 2008 (Unaudited)                          | 7       |
|     |                                                                                                                                            |    |
|     | Notes to Consolidated Financial Statements (Unaudited)                                                                                          | 8       |
|     |                                                                                                                                            |    |
| Item 2.  | Management's Discussion and Analysis of Financial Condition and Results of Operations for the Six and Three Months Ended June 30, 2009 and 2008 | 35      |
|     |                                                                                                                                            |    |
| Item 4T. | Controls and Procedures                                                                                                                         | 51      |
|     |                                                                                                                                            |    |
| PART II  | OTHER INFORMATION                                                                                                                               |    |
|     |                                                                                                                                            |    |
| Item 1.  | Legal Proceedings                                                                                                                               | 51      |
|     |                                                                                                                                            |    |
| Item 1A. | Risk Factors                                                                                                                                    | 52      |
|     |                                                                                                                                            |    |
| Item 2   | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                     | 52      |
|     |                                                                                                                                            |    |
| Item 3.  | Defaults Upon Senior Securities                                                                                                                 | 52      |
|     |                                                                                                                                            |    |
| Item 4.  | Submission of Matters to a Vote of Security Holders                                                                                             | 52      |
|     |                                                                                                                                            |    |
| Item 5.  | Other Information                                                                                                                               | 52      |
|     |                                                                                                                                            |    |
| Item 6.  | Exhibits                                                                                                                                        | 52      |
|     |                                                                                                                                            |    |
|     | Signatures                                                                                                                                      | 53      |

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Table of Contents 

| AMERICAN COMMUNITY PROPERTIES TRUST                                                           |   |
|-----------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                                                         |   |
| FOR THE SIX MONTHS ENDED JUNE 30,                                                             |   |
| (In thousands, except per share amounts)                                                      |   |
| (Unaudited)                                                                                   |   |
|                                                                                          |   | 2009 |   |   | 2008 |   |
| Revenues                                                                                      |   |   |   |   |   |   |
|   Rental property revenues                                                          |   | $ | 17,172 |   |   | $ | 16,879 |   |
|   Community development-land sales                                                  |   |   | 3,529 |   |   |   | 5,997 |   |
|   Homebuilding-home sales                                                           |   |   | - |   |   |   | 2,982 |   |
|   Management and other fees, substantially all from related entities                |   |   | 110 |   |   |   | 140 |   |
|   Reimbursement of expenses related to managed entities                             |   |   | 544 |   |   |   | 762 |   |
|     Total revenues                                                        |   |   | 21,355 |   |   |   | 26,760 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Expenses                                                                                      |   |   |   |   |   |   |   |   |
|   Rental property operating expenses                                                |   |   | 7,473 |   |   |   | 7,718 |   |
|   Cost of land sales                                                                |   |   | 2,644 |   |   |   | 4,725 |   |
|   Cost of home sales                                                                |   |   | 20 |   |   |   | 2,300 |   |
|   General, administrative, selling and marketing                                    |   |   | 4,393 |   |   |   | 5,046 |   |
|   Depreciation                                                                      |   |   | 2,525 |   |   |   | 2,748 |   |
|   Expenses reimbursed from managed entities                                         |   |   | 544 |   |   |   | 762 |   |
|     Total expenses                                                        |   |   | 17,599 |   |   |   | 23,299 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Operating Income                                                                              |   |   |       3,756 |   |   |   | 3,461 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Other income (expense)                                                                        |   |   |   |   |   |   |   |   |
|   Interest and other income                                                         |   |   | 206 |   |   |   | 362 |   |
|   Equity in earnings from unconsolidated entities                                   |   |   | 206 |   |   |   | 331 |   |
|   Interest expense                                                                  |   |   | (5,505 | ) |   |   | (4,996 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |
| Loss before benefit for income taxes                                                          |   |   | (1,337 | ) |   |   | (842 | ) |
| Benefit for income taxes                                                                      |   |   | (1,029 | ) |   |   | (275 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |
| Loss from continuing operations                                                               |   |   | (308 | ) |   |   | (567 | ) |
| Income from discontinued operations                                                      |   |   |   |   |   |   |   |   |
|      (less applicable income taxes of $617 and ($275), respectively) |   |   |   2,288 |   |   |   | 517 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Consolidated net income (loss)                                                                |   |   | 1,980 |   |   |   | (50 | ) |
|   Less: Net income attributable to noncontrolling interest                     |   |   | 1,292 |   |   |   | 1,321 |   |
|  Net income (loss) attributable to ACPT                                             |   | $ | 688 |   |   |  $ | (1,371 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |
| Income (loss) per common share – Basic and Diluted                            |   |   |   |   |   |   |   |   |
|   Loss from continuing operations                                                   |   | $ | (0.06 | ) |   | $ | (0.11 | ) |
|   Discontinued operations                                                           |   |   | 0.44 |   |   |   | 0.10 |   |
|   Income attributable to noncontrolling interest                                    |   |   | (0.25 | ) |   |   | (0.25 | )  |
|   Income (loss) applicable to common shareholders                                   |   | $ | 0.13 |   |   | $ | (0.26 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:                                                   |   |   |   |   |   |   |   |   |
|   Basic and diluted                                                                 |   |   | 5,223 |   |   |   | 5,212 |   |
| Cash dividends per common share                                                               |   | $ | - |   |   | $ | - |   |
| The accompanying notes are an integral part of these consolidated statements.                 |   |   |   |   |   |

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Table of Contents 

| AMERICAN COMMUNITY PROPERTIES TRUST                                                                    |   |
|--------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                                                                  |   |
| FOR THE THREE MONTHS ENDED JUNE 30,                                                                    |   |
| (In thousands, except per share amounts)                                                               |   |
| (Unaudited)                                                                                            |   |
|                                                                                                   |   | 2009 |   |   | 2008 |   |
| Revenues                                                                                               |   |   |   |   |   |   |
|   Rental property revenues                                                                   |   | $ | 8,677 |   |   | $ | 8,478 |   |
|   Community development-land sales                                                           |   |   | 2,998 |   |   |   | 4,951 |   |
|   Homebuilding-home sales                                                                    |   |   | - |   |   |   | 738 |   |
|   Management and other fees, substantially all from related entities                         |   |   | 47 |   |   |   | 72 |   |
|   Reimbursement of expenses related to managed entities                                      |   |   | 247 |   |   |   | 381 |   |
|     Total revenues                                                                 |   |   | 11,969 |   |   |   | 14,620 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |
| Expenses                                                                                               |   |   |   |   |   |   |   |   |
|   Rental property operating expenses                                                         |   |   | 3,740 |   |   |   | 3,893 |   |
|   Cost of land sales                                                                         |   |   | 2,198 |   |   |   | 3,822 |   |
|   Cost of home sales                                                                         |   |   | 8 |   |   |   | 583 |   |
|   General, administrative, selling and marketing                                             |   |   | 2,056 |   |   |   | 2,714 |   |
|   Depreciation                                                                               |   |   | 1,267 |   |   |   | 1,277 |   |
|   Expenses reimbursed from managed entities                                                  |   |   | 247 |   |   |   | 381 |   |
|     Total expenses                                                                 |   |   | 9,516 |   |   |   | 12,670 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |
| Operating Income                                                                                       |   |   | 2,453 |   |   |   | 1,950 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |
| Other income (expense)                                                                                 |   |   |   |   |   |   |   |   |
|   Interest and other income                                                                  |   |   | 103 |   |   |   | 188 |   |
|   Equity in earnings from unconsolidated entities                                            |   |   | 109 |   |   |   | 163 |   |
|   Interest expense                                                                           |   |   | (2,670 | ) |   |   | (2,524 | ) |
|                                                                                                   |   |   |   |   |   |   |   |   |
| Loss before provision (benefit) for income taxes                                                       |   |   | (5 | ) |   |   | (223 | ) |
| Provision (benefit) for income taxes                                                                   |   |   | 140 |   |   |   | (102 | ) |
|                                                                                                   |   |   |   |   |   |   |   |   |
| Loss from continuing operations                                                                        |   |   | (145 | ) |   |   | (121 | ) |
| Income from discontinued operations(less applicable income taxes of $249 and ($44), respectively) |   |   | 1,522 |   |   |   | 105 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |
| Consolidated net income (loss)                                                                         |   |   | 1,377 |   |   |   | (16 | ) |
|   Less: Net income attributable to noncontrolling interest                                   |   |   | 519 |   |   |   | 162 |   |
| Net income (loss) attributable to ACPT                                                                 |   |   | 858 |   |   |   | (178 | ) |
|                                                                                                   |   |   |   |   |   |   |   |   |
| Earnings (loss)  per share –Basic and Diluted                                          |   |   |   |   |   |   |   |   |
|   Loss from continuing operations                                                            |   | $ | (0.03 | ) |   | $ | (0.03 | ) |
|   Discontinued operations                                                                    |   |   | 0.29 |   |   |   | 0.03 |   |
|   Income attributable to noncontrolling interest                                        |   |   | (0.10 | ) |   |   | (0.03 | ) |
|   Income (loss) applicable to common shareholders                                       |   | $ | 0.16 |   |   | $ | (0.03 | ) |
|                                                                                                   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding:                                                                   |   |   |   |   |   |   |   |   |
|   Basic and diluted                                                                          |   |   | 5,223 |   |   |   | 5,213 |   |
| Cash dividends per share                                                                               |   | $ | - |   |   | $ | - |   |
| The accompanying notes are an integral part of these consolidated statements.                          |   |   |   |   |   |

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Table of Contents 

| AMERICAN COMMUNITY PROPERTIES TRUST                                                   |   |
|---------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                           |   |
| (In thousands, except share and per share amounts)                                    |   |
|                                                                                  |   | As ofJune 30,2009 |   |   | As ofDecember 31,  2008 |   |
|                                                                                  |   | (Unaudited) |   |   |   |   |
| ASSETS                                                                                |   |   |   |   |   |   |
| ASSETS:                                                                               |   |   |   |   |   |   |
| Investments in real estate, at cost:                                                  |   |   |   |   |   |   |
|   Operating real estate, net of accumulated depreciation                    |   |   |   |   |   |   |
|    of $82,672 and $79,379, respectively                                |   | $ | 80,374 |   |   | $ | 82,918 |   |
|   Land and development costs                                                |   |   | 97,741 |   |   |   | 96,266 |   |
|   Condominiums under construction                                           |   |   | 1,794 |   |   |   | 1,745 |   |
|   Rental projects under construction or development                         |   |   | 15,204 |   |   |   | 4,564 |   |
|     Investments in real estate, net                               |   |   | 195,113 |   |   |   | 185,493 |   |
|                                                                                  |   |   |   |   |   |   |   |   |
| Property and related assets held for sale                                             |   |   | 96,937 |   |   |   | 93,628 |   |
|                                                                                  |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                             |   |   | 20,508 |   |   |   | 24,035 |   |
| Restricted cash and escrow deposits                                                   |   |   | 11,546 |   |   |   | 9,500 |   |
| Investments in unconsolidated real estate entities                                    |   |   | 5,989 |   |   |   | 5,121 |   |
| Receivable from bond proceeds                                                         |   |   | 2,622 |   |   |   | 2,052 |   |
| Accounts receivable, net                                                              |   |   | 845 |   |   |   | 992 |   |
| Deferred tax assets                                                                   |   |   | 26,112 |   |   |   | 28,540 |   |
| Property and equipment, net of accumulated depreciation                               |   |   | 800 |   |   |   | 898 |   |
| Deferred charges and other assets, net of amortization of                             |   |   |   |   |   |   |   |   |
|   $3,643 and $2,764, respectively                                           |   |   | 4,834 |   |   |   | 4,934 |   |
|     Total Assets                                                  |   | $ | 365,306 |   |   | $ | 355,193 |   |
|                                                                                  |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                  |   |   |   |   |   |   |   |   |
| LIABILITIES:                                                                          |   |   |   |   |   |   |   |   |
| Non-recourse debt                                                                     |   | $ | 173,736 |   |   | $ | 168,221 |   |
| Recourse debt                                                                         |   |   | 39,043 |   |   |   | 39,416 |   |
| Accounts payable and accrued liabilities                                              |   |   | 20,959 |   |   |   | 19,553 |   |
| Deferred income                                                                       |   |   | 144 |   |   |   | 200 |   |
| Accrued current income tax liability                                                  |   |   | 14,334 |   |   |   | 14,754 |   |
| Liabilities related to assets held for sale                                           |   |   | 115,005 |   |   |   | 111,812 |   |
|     Total Liabilities                                             |   |   | 363,221 |   |   |   | 353,956 |   |
|                                                                                  |   |   |   |   |   |   |   |   |
| COMMITMENTS AND CONTINGENT LIABILITIES  (NOTE 6)                            |   |   |   |   |   |   |   |   |
|                                                                                  |   |   |   |   |   |   |   |   |
| SHAREHOLDERS’ EQUITY                                                            |   |   |   |   |   |   |   |   |
|   ACPT’s shareholders equity:                                         |   |   |   |   |   |   |   |   |
|     Common shares, $.01 par value, 10,000,000 shares authorized,  |   |   |   |   |   |   |   |   |
|      5,229,954 shares issued and outstanding                 |   |   |   |   |   |   |   |   |
|       as of June 30, 2009 and December 31, 2008         |   |   | 52 |   |   |   | 52 |   |
|     Treasury stock, 67,709 shares at cost                         |   |   | (376 | ) |   |   | (376 | ) |
|     Additional paid-in capital                                    |   |   | 18,608 |   |   |   | 18,144 |   |
|     Retained deficit                                              |   |   | (15,791 | ) |   |   | (16,479 | ) |
|         Total ACPT shareholders’ equity |   |   | 2,493 |   |   |   | 1,341 |   |
|   Noncontrolling interests                                                  |   |   | (408 | ) |   |   | (104 | ) |
|     Total  Shareholders’ Equity                   |   |   | 2,085 |   |   |   | 1,237 |   |
|     Total Liabilities and Shareholders’ Equity              |   | $ | 365,306 |   |   | $ | 355,193 |   |

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Table of Contents 

| AMERICAN COMMUNITY PROPERTIES TRUST                                           |   |
|-------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY                    |   |
| (In thousands, except share amounts)                                          |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   | ACPT Shareholders’ Equity |   |   |   |   |   |   |   |
|                                                                          |   | Common Shares |   |   |   |   |   | Additional |   |   |   |   |   | Non- |   |   | Total |   |
|                                                                          |   |   |   |   | Par |   |   | Treasury |   |   | Paid-in |   |   | Retained |   |   | Controlling |   |   | Shareholders’ |   |
|                                                                          |   | Number |   |   | Value |   |   | Stock |   |   | Capital |   |   | Deficit |   |   | Interest |   |   | Equity |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance December 31, 2008                                                     |   |   | 5,229,954 |   |   | $ | 52 |   |   | $ | (376 | ) |   | $ | 18,144 |   |   | $ | (16,479 | ) |   | $ | (104 | )  |   | $ | 1,237 |   |
| Net income attributable to ACPT                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 688 |   |   |   | - |   |   |   | 688 |   |
| Net income attributable to noncontrolling interests                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,292 |   |   |   | 1,292 |   |
| Dividends paid to noncontrolling interests                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,596 | ) |   |   | (1,596 | ) |
| Equity Compensation                                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 464 |   |   |   | - |   |   |   | - |   |   |   | 464 |   |
| Balance June 30, 2009 (unaudited)                                             |   |   | 5,229,954 |   |   | $ | 52 |   |   | $ | (376 | ) |   | $ | 18,608 |   |   | $ | (15,791 | ) |   | $ | (408 | ) |   | $ | 2,085 |   |
| The accompanying notes are an integral part of these consolidated statements. |   |

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| AMERICAN COMMUNITY PROPERTIES TRUST                                                       |
|-------------------------------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                     |
| FOR THE SIX MONTHS ENDED JUNE 30,                                                         |
| (In thousands)                                                                            |
| (Unaudited)                                                                               |
|                                                                                      |   |   |   |   |
|                                                                                      |   |   | 2009  |   |   |   | 2008  |   |
|  Cash Flows from Operating Activities                                                |   |   |   |   |   |   |   |   |
|   Consolidated net income (loss)                                                |   | $ | 1,980 |   |   | $ | (50 | ) |
|    Adjustments to reconcile consolidated net income (loss) to net cash provided |   |   |   |   |   |   |   |   |
|     by (used in) operating activities:                                |   |   |   |   |   |   |   |   |
|       Depreciation                                          |   |   | 2,525 |   |   |   | 5,042 |   |
|       (Benefit) provision for deferred income taxes         |   |   | 749 |   |   |   | (419 | ) |
|       Equity in earnings from unconsolidated entities  |   |   | (206 | ) |   |   | (331 | ) |
|       Distribution of earnings from unconsolidated entities |   |   | 319 |   |   |   | 331 |   |
|       Cost of land sales                                    |   |   | 2,644 |   |   |   | 4,725 |   |
|       Cost of home sales                                    |   |   | 20 |   |   |   | 2,300 |   |
|       Write-down of assets                                       |   |   | 842 |   |   |   | - |   |
|       Stock based compensation expense                      |   |   | 464 |   |   |   | 100 |   |
|       Amortization of deferred loan costs                   |   |   | 414 |   |   |   | 440 |   |
|       Changes in accounts receivable                        |   |   | 53 |   |   |   | 594 |   |
|       Additions to land and development costs               |   |   | (7,750 | ) |   |   | (12,890 | ) |
|       Additions to condominiums under construction          |   |   | (69 | ) |   |   | (127 | ) |
|       Change in deferred income                             |   |   | (56 | ) |   |   | (126 | ) |
|       Change in deferred charges and other assets           |   |   |  1,496 |   |   |   | 1,213 |   |
|       Changes in accounts payable, accrued liabilities      |   |   | (2,000 | )  |   |   | (1,811 | ) |
|   Net cash provided by (used in) operating activities                           |   |   | 1,425 |   |   |   | (1,009 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities                                                      |   |   |   |   |   |   |   |   |
|   Investment in rental projects under construction or development               |   |   | (4,192 | ) |   |   | (1,206 | ) |
|   Change in investments - unconsolidated entities                               |   |   | (981 | ) |   |   | 19 |   |
|   Net deposits to restricted cash                                               |   |   | (2,598 | ) |   |   | (1,228 | )  |
|   Additions to operating real estate, net                                       |   |   | (1,790 | ) |   |   | (1,567 | ) |
|   Net purchase of other assets                                                  |   |   | (1,725 | ) |   |   | (100 | ) |
|   Net cash used in investing activities                                         |   |   | (11,286 | ) |   |   | (4,082 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| Cash Flows from Financing Activities                                                      |   |   |   |   |   |   |   |   |
|   Cash proceeds from debt financing                                             |   |   | 12,886 |   |   |   | 1,292 |   |
|   Payment of debt                                                               |   |   | (5,543 | ) |   |   | (1,911 | ) |
|   County Bonds proceeds, net of undisbursed funds                               |   |   | 587 |   |   |   | 4,176 |   |
|   Payments of distributions to noncontrolling interests                         |   |   | (1,596 | ) |   |   | (1,247 | ) |
|   Net cash provided by financing activities                                     |   |   | 6,334 |   |   |   | 2,310 |   |
| Net Decrease in Cash and Cash Equivalents                                                 |   |   | (3,527 | ) |   |   | (2,781 | ) |
| Cash and Cash Equivalents, Beginning of Period                                            |   |   | 24,035 |   |   |   | 24,912 |   |
| Cash and Cash Equivalents, End of Period                                                  |   | $ | 20,508 |   |   | $ | 22,131 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
|  The accompanying notes are an integral part of these consolidated statements.       |   |   |   |   |   |   |   |   |

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Table of Contents 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

| (1) | ORGANIZATION |
|-----|--------------|

| (2) | LIQUIDITY RESOURCES AND DEBT MATURITIES |
|-----|-----------------------------------------|

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Table of Contents 

|  (3) | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|-----------|----------------------------------------------------------------------|

| Alturas del Senorial Associates Limited Partnership     |   | Land Development Associates S.E.                   |
|---------------------------------------------------------|--------|----------------------------------------------------|
| American Housing Management Company                     |   | LDA Group, LLC                                     |
|     American Housing Properties L.P.     |   | Milford Station I, LLC                             |
| Bannister Associates Limited Partnership                |   | Milford Station II, LLC                            |
| Bayamon Garden Associates Limited Partnership           |   | Monserrate Associates Limited Partnership          |
| Carolina Associates Limited Partnership S.E.            |   | New Forest Apartments, LLC                         |
| Coachman's Apartments, LLC                              |   | Nottingham South, LLC                              |
| Colinas de San Juan Associates Limited Partnership      |   | Owings Chase, LLC                                  |
| Crossland Associates Limited Partnership                |   | Palmer Apartments Associates Limited Partnership   |
| Escorial Office Building I, Inc.                        |   | Prescott Square, LLC                               |
| Essex Apartments Associates Limited Partnership         |   | St. Charles Community, LLC                         |
| Fox Chase Apartments, LLC                               |   | San Anton Associates S.E.                          |
| Gleneagles Apartments, LLC                              |   | Sheffield Greens Apartments, LLC                   |
| Headen House Associates Limited Partnership             |   | Torres del Escorial, Inc.                          |
| Huntington Associates Limited Partnership               |   | Turabo Limited Dividend Partnership                |
| Interstate Commercial Properties, Inc.                  |   | Valle del Sol Associates Limited Partnership       |
| Interstate General Properties Limited Partnership, S.E. |   | Village Lake Apartments, LLC                       |
| Jardines de Caparra Associates Limited Partnership      |   | Wakefield Terrace Associates Limited Partnership   |
| Lancaster Apartments Limited Partnership                |   | Wakefield Third Age Associates Limited Partnership |

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| · | Buildings and improvements are depreciated over five to forty years using the straight-line or double declining balance methods;         |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|
| · | Furniture, fixtures and equipment are depreciated over five to seven years using the straight-line method;                               |
| · | Leasehold improvements are capitalized and depreciated over the lesser of the life of the lease or their estimated useful life; and |
| · | Maintenance and other repair costs are charged to operations as incurred                                                                 |

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|                           |   | June 30, 2009 |    |   | December 31,   2008 |   |
|--------------------------------|--------|--------------------|---------|--------|-------------------------------|--------|
|                           |   | (Unaudited)        |    |   |                          |   |
| Building                       |   | $                  | 142,678 |   |                          | $      | 141,917 |   |
| Building improvements          |   |               | 2,678   |   |                          |   | 1,463 |   |
| Equipment                      |   |               | 5,740   |   |                          |   | 6,912 |   |
|                           |   |               | 151,096 |   |                          |   | 150,292 |   |
| Less: Accumulated depreciation |   |               | 82,672  |   |                          |   | 79,379 |   |
|                           |   |               | 68,424  |   |                          |   | 70,913 |   |
| Land                           |   |               | 11,950  |   |                          |   | 12,005 |   |
| Operating properties, net      |   | $                  | 80,374  |   |                          | $      | 82,918 |   |
|                           |   |               |    |   |                          |   |   |   |

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|                                                                          |   | Six Months |   |   | Three Months |   |
|-------------------------------------------------------------------------------|--------|------------|--------|--------|--------------|--------|
|        (Loss) income from continuing operations |   | $          | (996   | )      |         | $      | (145 | ) |
| Income from discontinued operations                                           |   |       | 89     |   |         |   | 1,003 |   |
| Pro forma net (loss) income attributable to ACPT’s shareholders    |   | $          | (907   | )      |         | $      | 858 |   |
|                                                                          |   |       |   |   |         |   |   |   |
| Basic and diluted earnings (loss) per common unit                             |   |       |   |   |         |   |   |   |
| (Loss) income from continuing operations                                      |   | $          | (0.19  | )      |         | $      | (0.03 | ) |
| Income from discontinued operations                                           |   |       | 0.02   |   |         |   | 0.19 |   |
| Pro forma net (loss) income attributable to ACPT’s shareholders         |   | $          | (0.17  | )      |         | $      | 0.16 |   |
|                                                                          |   |       |   |   |         |   |   |   |

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|  (4) | INVESTMENT IN UNCONSOLIDATED REAL ESTATE ENTITIES |
|-----------|---------------------------------------------------|

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|                                      |   | Apartment      |   |   | Commercial |   |   |         |   |   |   |   |
|-------------------------------------------|--------|----------------|--------|--------|------------|--------|--------|--------------|--------|--------|--------|--------|
|                                      |   | Properties     |   |   | Property   |   |   | Homebuilding |   |   | Total  |   |
|                                      |   | (in thousands) |   |
| Summary of Financial Position             |   |           |   |   |       |   |   |         |   |   |   |   |
|   Total Assets                  |   |           |   |   |       |   |   |         |   |   |   |   |
|     June 30, 2009     |   | $              | 4,717  |   |       | $      | 27,128 |         |   | $      | 3,742  |   |   | $ | 35,587 |   |
|     December 31, 2008 |   |           | 4,781  |   |       |   | 27,005 |         |   |   | 2,478  |   |   |   | 34,264 |   |
|   Total Non-Recourse Debt       |   |           |   |   |       |   |   |         |   |   |   |   |   |   |   |   |
|     June 30, 2009     |   |           | 3,088  |   |       |   | 22,375 |         |   |   | -      |   |   |   | 25,463 |   |
|     December 31, 2008 |   |           | 3,123  |   |       |   | 22,380 |         |   |   | -      |   |   |   | 25,503 |   |
|   Total Other Liabilities       |   |           |   |   |       |   |   |         |   |   |   |   |   |   |   |   |
|     June 30, 2009     |   |           | 981    |   |       |   | 111    |         |   |   | 29     |   |   |   | 1,121 |   |
|     December 31, 2008 |   |           | 960    |   |       |   | 153    |         |   |   | -      |   |   |   | 1,113 |   |
|   Total Equity                  |   |           |   |   |       |   |   |         |   |   |   |   |   |   |   |   |
|     June 30, 2009     |   |           | 648    |   |       |   | 4,642  |         |   |   | 3,276  |   |   |   | 8,566 |   |
|     December 31, 2008 |   |           | 698    |   |       |   | 4,472  |         |   |   | 2,478  |   |   |   | 7,648 |   |
|   Company's Investment, net (1) |   |           |   |   |       |   |   |         |   |   |   |   |   |   |   |   |
|     June 30, 2009     |   |           | -      |   |       |   | 4,613  |         |   |   | 1,376  |   |   |   | 5,989 |   |
|     December 31, 2008 |   |           | -      |   |       |   | 4,632  |         |   |   | 489    |   |   |   | 5,121 |   |

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|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Summary of Operations                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total Revenue                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Six Months Ended June 30, 2009         |   |   | 417    |   |   |   | 1,737  |   |   |   | 24     |   |   |   | 2,178  |   |
|     Six Months Ended June 30, 2008         |   |   | 418    |   |   |   | 1,789  |   |   |   | -      |   |   |   | 2,207  |   |
|     Three Months Ended June 30, 2009       |   |   | 207    |   |   |   | 878    |   |   |   | 13     |   |   |   | 1,098  |   |
|     Three Months Ended June 30, 2008       |   |   | 210    |   |   |   | 893    |   |   |   | -      |   |   |   | 1,103  |   |
|   Net Income (Loss)                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Six Months Ended June 30, 2009         |   |   | (50    | )      |   |   | 876    |   |   |   | (226   | )      |   |   | 600    |   |
|     Six Months Ended June 30, 2008         |   |   | (67    | )      |   |   | 909    |   |   |   | -      |   |   |   | 842    |   |
|     Three Months Ended June 30, 2009       |   |   | (19    | )      |   |   | 454    |   |   |   | (109   | )      |   |   | 326    |   |
|     Three Months Ended June 30, 2008       |   |   | (32    | )      |   |   | 453    |   |   |   | -      |   |   |   | 421    |   |
|   Company's recognition of equity in Earnings (Loss) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Six Months Ended June 30, 2009         |   |   | -      |   |   |   | 319    |   |   |   | (113   | )      |   |   | 206    |   |
|     Six Months Ended June 30, 2008         |   |   | -      |   |   |   | 331    |   |   |   | -      |   |   |   | 331    |   |
|     Three Months Ended June 30, 2009       |   |   | -      |   |   |   | 168    |   |   |   | (59    | )      |   |   | 109    |   |
|     Three Months Ended June 30, 2008       |   |   | -      |   |   |   | 163    |   |   |   | -      |   |   |   | 163    |   |

| Summary of Cash Flows                                               |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|
|   Cash flows from operating activities                    |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |
|     Six Months Ended June 30, 2009              |   |   | 106    |   |   |   | 949    |   |   |   | (197    | )      |   |   | 858    |   |
|     Six Months Ended June 30, 2008              |   |   | 49     |   |   |   | 977    |   |   |   | 1       |   |   |   | 1,027  |   |
|     Three Months Ended June 30, 2009            |   |   | 45     |   |   |   | 150    |   |   |   | (110    | )      |   |   | 85     |   |
|     Three Months Ended June 30, 2008            |   |   | 44     |   |   |   | 58     |   |   |   | 7       |   |   |   | 109    |   |
|   Company's share of cash flows from operating activities |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |
|     Six Months Ended June 30, 2009              |   |   | 1      |   |   |   | 429    |   |   |   | (99     | )      |   |   | 331    |   |
|     Six Months Ended June 30, 2008              |   |   | -      |   |   |   | 442    |   |   |   | 1       |   |   |   | 443    |   |
|     Three Months Ended June 30, 2009            |   |   | -      |   |   |   | 67     |   |   |   | (56     | )      |   |   | 11     |   |
|     Three Months Ended June 30, 2008            |   |   | -      |   |   |   | 26     |   |   |   | 4       |   |   |   | 30     |   |
|   Operating cash distributions                            |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |
|     Six Months Ended June 30, 2009              |   |   |   |   |   |   | 706    |   |   |   | -       |   |   |   | 706    |   |
|     Six Months Ended June 30, 2008              |   |   | -      |   |   |   | 773    |   |   |   | -       |   |   |   | 773    |   |
|     Three Months Ended June 30, 2009            |   |   | -      |   |   |   | 362    |   |   |   |  - |   |   |   | 362    |   |
|     Three Months Ended June 30, 2008            |   |   | -      |   |   |   | 386    |   |   |   | -       |   |   |   | 386    |   |
|   Company's share of operating                            |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |
|   cash distributions                                      |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |
|     Six Months Ended June 30, 2009              |   |   |   |   |   |   | 338    |   |   |   | -       |   |   |   | 338    |   |
|     Six Months Ended June 30, 2008              |   |   | -      |   |   |   | 351    |   |   |   | -       |   |   |   | 351    |   |
|     Three Months Ended June 30, 2009            |   |   | -      |   |   |   | 164    |   |   |   | -       |   |   |   | 164    |   |
|     Three Months Ended June 30, 2008            |   |   | -      |   |   |   | 175    |   |   |   | -       |   |   |   | 175    |   |

| (1)   | Represents the Company's net investment, including assets and accrued liabilities in the consolidated balance sheet for unconsolidated real estate entities. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (5) | DEBT |
|-----|------|

|                                                          |   | Maturity |              |   | Interest |          |       | Outstanding as of |   |
|---------------------------------------------------------------|--------|----------|-------------------|--------|----------|---------------|------------|-------------------|--------|
|                                                          |   | Dates    |              |   | Rates    |          |       | June 30,          |   |   | December 31, |   |
|                                                          |   | From/To  |              |   | From/To  |          |       | 2009              |   |   | 2008 |   |
|                                                          |   |     |              |   |     |          |       | (Unaudited)       |   |   | (Audited) |   |
| Recourse Debt                                                 |   |     |              |   |     |          |       |              |   |   |   |   |
|   Community Development  (a)(b)(c)(d)          |   |     | 08-31-09/03-01-23 |   |     |          | 3.25%/8%   |              |   | $ | 38,877 |   |   | $ | 39,232 |   |
|   General obligations  (e)                     |   |     | 07-01-09/03-13-12 |   |     | Non-interest  |       |              |   |   |   |   |   |   |   |
|                                                          |   |     |              |   |     | bearing/8.55% |       |              |   | 166 |   |   |   | 184 |   |
| Total Recourse Debt                                           |   |     |              |   |     |          |       |              |   |   | 39,043 |   |   |   | 39,416 |   |
|                                                          |   |     |              |   |     |          |       |              |   |   |   |   |   |   |   |   |
| Non-Recourse Debt  (f)(g)                                |   |     |              |   |     |          |       |              |   |   |   |   |   |   |   |   |
|   Investment Properties  (h)                   |   |     | 12-01-13/07-01-50 |   |     |          | 4.95%/6.9% |              |   |   | 173,736 |   |   |   | 168,221 |   |
|   Held for Sale – Non-Recourse Debt  (i) |   |     | 05-01-12/09-13-19 |   |     |          | 5.3%/10%   |              |   |   | 111,256 |   |   |   | 107,899 |   |
| Total Non-Recourse Debt                                       |   |     |              |   |     |          |       |              |   |   | 284,992 |   |   |   | 276,120 |   |
|     Total Debt                            |   |     |              |   |     |          |       |              |   | $ | 324,035 |   |   | $ | 315,536 |   |

| a.   | As of June 30, 2009, $26,388,000 of the community development recourse debt is owed to Charles County Commissioners and relates to the general obligation bonds issued by the Charles County government, with 15 year amortization of maturities with the earliest in June, 2019, as described in detail under the heading "Financial Commitments" inNote 6.  As of June 30, 2009, the Company has a receivable balance related to the bonds of $2,622,000.  |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | On April 14, 2006, the Company closed a three year, $14,000,000 revolving acquisition and development loan (“the Revolver”) secured by a first lien deed of trust on property located in St. Charles, Maryland.  During the first quarter of 2009, the Company renegotiated the terms of the agreement.  The loan bearsinterest at Prime plus 1.25% (4.5% at June 30, 2009) and matures on March 31, 2010.  As of June 30, 2009, $3,046,000 was outstanding on the Revolver. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Land Development Associates, S.E (“LDA”) has a $10,000,000 revolving line of credit facility that bears interest at a fluctuating rate equivalent to the LIBOR Rate plus 225 basis points (3.43% as of June 30, 2009) and matures on August 31, 2009.  The facility is to be used to fund the development of infrastructureof Parque Escorial and Parque El Comandante.  The outstanding balance of this facility on June 30, 2009, was $6,128,000.                                                                                                                                                                                                                                   |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| d.   | On April 2, 2008, the Company secured a two-year, $3,600,000 construction loan for the construction of a commercial restaurant/office building within the O’Donnell Lake Restaurant Park.  The facility is secured by the land along with any improvements constructed and bears interest at Wall Street Journal published Prime Rate(3.25% at June 30, 2009).  At the end of the two-year construction period, the Company may convert the loan to a 5-year permanent loan, amortized over a 30 year period at a fixed interest rate to be determined.  As of June 30, 2009, $3,315,000 was outstanding under this facility leaving $286,000 available to fund completion of the building. |

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| e   | On April 14, 2006, the Company closed a three year, $14,000,000 revolving acquisition and development loan (“the Revolver”) secured by a first lien deed of trust on property located in St. Charles, Maryland.  During the first quarter of 2009, the Company renegotiated the terms of the agreement.  The loan bearsinterest at Prime plus 1.25% (4.5% at June 30, 2009) and matures on March 31, 2010.  As of June 30, 2009, $3,046,000 was outstanding on the Revolver. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f.   | Land Development Associates, S.E (“LDA”) has a $10,000,000 revolving line of credit facility that bears interest at a fluctuating rate equivalent to the LIBOR Rate plus 225 basis points (3.43% as of June 30, 2009) and matures on August 31, 2009.  The facility is to be used to fund the development of infrastructureof Parque Escorial and Parque El Comandante.  The outstanding balance of this facility on June 30, 2009, was $6,128,000.                                                                                                                                                                                                                                   |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| g.   | On April 2, 2008, the Company secured a two-year, $3,600,000 construction loan for the construction of a commercial restaurant/office building within the O’Donnell Lake Restaurant Park.  The facility is secured by the land along with any improvements constructed and bears interest at Wall Street Journal published Prime Rate(3.25% at June 30, 2009).  At the end of the two-year construction period, the Company may convert the loan to a 5-year permanent loan, amortized over a 30 year period at a fixed interest rate to be determined.  As of June 30, 2009, $3,315,000 was outstanding under this facility leaving $286,000 available to fund completion of the building. |

| h.   | The general recourse debt outstanding as of June 30, 2009 is made up of various capital leases outstanding within our U.S. and Puerto Rico operations, as well as installment loans for vehicles and other miscellaneous equipment.                                                                                    |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| i.   | The non-recourse debt related to the investment properties is collateralized by the multifamily rental properties and the office building in Parque Escorial.  As of June 30, 2009, approximately $73,089,000 of this debt is secured by the Federal Housing Administration ("FHA") or the Maryland Housing Fund. |

| j.   | On May 12, 2008, IGP agreed to provide a fixed charge and debt service guarantee related to the Escorial Office Building I, Inc. (“EOB”) mortgage.  The fixed charge and debt service guarantee requires IGP to contribute capital in cash in such amounts required to cause EOB to comply with the related financial covenants.  Theguarantee will remain in full force until EOB has complied with the financial covenants for four consecutive quarters.  |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| k.   | On January 28, 2009, the Company completed the initial closing of a 6.9 percent, $25,045,000 non-recourse construction loan to fund the construction costs for a new apartment property in St. Charles' Fairway Village.  As of June 30, 2009, the balance on the loan was $6,667,000.                                                                                                                                                                                             |
| l.   | On June 30, 2009, IGP refinanced the existing mortgage on the Monserrate Associates apartment property.  The new mortgage for $10,920,000 is a 58-month term loan, with an amortization schedule of 25 years, maturing on April 30, 2014.  The loan bears interest at prime plus300 basis points (6.25% as of June 30, 2009), with a balloon payment of $10,055,000 at the maturity date.                    |

|  (6) | COMMITMENTS AND CONTINGENT LIABILITIES |
|-----------|----------------------------------------|

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|  (7) | RELATED PARTY TRANSACTIONS |
|-----------|----------------------------|

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|  CONSOLIDATED STATEMENT OF INCOME:                                                     |                  |   | Six Months Ended June 30, |   |   | Three Months Ended June 30, |   |
|---------------------------------------------------------------------------------------------|-----------------------|--------|---------------------------|--------|--------|----------------------------------|--------|
|                                                                                        |                  |   | 2009                      |   |   | 2008                             |   |   | 2009 |   |   | 2008 |   |
| Management and Other Fees                                                                   |                  |   |                      |   |   |                             |   |   |   |   |   |   |   |
|   Unconsolidated subsidiaries with third party partners                           |    (A) |   | $                         | 21     |   |                             | $      | 21 |   |   | $ | 11 |   |   | $ | 11 |   |
|                                                                                        |                  |   |                      |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Rental Property Revenues                                                                    |    (B) |   | $                         | -      |   |                             | $      | 30 |   |   | $ | - |   |   | $ | 15 |   |
|                                                                                        |                  |   |                      |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Interest and Other Income                                                                   |                  |   |                      |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |
|   Unconsolidated real estate entities with third party partners                   |                  |   | $                         | 5      |   |                             | $      | 4 |   |   | $ | 3 |   |   | $ | 2 |   |
|                                                                                        |                  |   |                      |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| General and Administrative Expense                                                          |                  |   |                      |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |
|   Reserve additions (reductions) and other write-offs-                            |                  |   |                      |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |
|     Unconsolidated real estate entities with third party partners       |    (A) |   | $                         | 8      |   |                             | $      | (9 | ) |   | $ | 12 |   |   | $ | 13 |   |
|     Reimbursement to IBC for ACPT's share of J. Michael Wilson's salary |                  |   |                      | 212    |   |                             |   | 207 |   |   |   | 108 |   |   |   | 103 |   |
|   Reimbursement of administrative costs-                                          |                  |   |                      |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |
|     Affiliates of J. Michael Wilson, Chairman                           |                  |   |                      | (8     | )      |                             |   | (10 | ) |   |   | (4 | ) |   |   | (5 | ) |
|   Consulting Fees-                                                                |                  |   |                      |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |
|     James J. Wilson, IGC Chairman and Director                          |   (B1)      |   |                      | --     |   |                             |   | 100 |   |   |   | -- |   |   |   | 50 |   |
|     Thomas J. Shafer, Trustee                                           |   (B2)      |   |                      | 5      |   |                             |   | 30 |   |   |   | -- |   |   |   | 15 |   |
|                                                                                        |                  |   | $                         | 217    |   |                             | $      | 318 |   |   | $ | 116 |   |   | $ | 176 |   |

|                                                 |             |   |                            |   |   |                      |   |
|------------------------------------------------------|------------------|--------|---------------------------------|--------|--------|---------------------------|--------|
| BALANCE SHEET:                                       |             |   | Balance June 30, 2009 |   |   | Balance December 31, 2008 |
| Other Assets                                         |             |   |                            |   |   |                      |
| Receivables – All unsecured and due on demand  |             |   |                            |   |   |                      |
|   Unconsolidated subsidiaries              |             |   | $                               | 3      |   |                      | $      | 10 |   |
|   Affiliate of J. Michael Wilson, Chairman |             |   |                            | 10     |   |                      |   | 2 |   |
| Total                                                |             |   | $                               | 13     |   |                      | $      | 12 |   |
|                                                 |             |   |                            |   |   |                      |   |   |   |
| Additional Paid-in Capital                           |   (B3) |   | $                               | 821    |   |                      | $      | 562 |   |

| (A)   | Management and Other Services  |   |
|-----------------|-------------------------------------|--------|

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| 1)   | Represents fees paid to James J. Wilson pursuant to a consulting and retirement agreement.  At Mr. Wilson's request, payments are made to Interstate Waste Technologies, Inc. (“IWT”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2)   | Represents fees paid to Thomas J. Shafer, a Trustee, pursuant to a consulting agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3)   | A primary shareholder of the Company agreed in principle to provide the Company’s Chief Executive Officer with the economic benefit of 185,550 shares of their common stock as of October 1, 2008 in accordance with the five year vesting schedule.  According to SFAS 123(R), any share-based payments awarded to an employee of the reportingentity by a related party for services provided to the entity are share-based payment transactions under SFAS123(R) unless the transfer is clearly for a purpose other than compensation for services to the reporting entity.  Therefore, in essence, the economic interest holder makes a capital contribution to the reporting entity, and the reporting entity makes a share-based payment to its employee in exchange for services rendered.   The Company recognized $259,000 and $246,000 in compensationexpense in the six and three months ended June 30, 2009, respectively, related to this grant.  |

| (8) | INCOME TAXES |
|-----|--------------|

| Unrecognized tax benefit at December 31, 2008                        |   | $      | 15,543 |   |
|----------------------------------------------------------------------|--------|--------|--------|--------|
| Change attributable to tax positions taken during a prior period     |   |   | (1,339 | )      |
| Change attributable to tax positions taken during the current period |   |   | -      |   |
| Decrease attributable to settlements with taxing authorities         |   |   | -      |   |
| Decrease attributable to lapse of statute of limitations             |   |   | -      |   |
| Unrecognized tax benefit at June 30, 2009                            |   | $      | 14,204 |   |

----

Table of Contents 

|  (9) | HELD FOR SALE ASSETS |
|-----------|----------------------|

----

Table of Contents 

| For the six months ended June 30,                                      |   | 2009    |                                            |   | 2008   |    |
|------------------------------------------------------------------------|--------|---------|-------------------------------------------------|--------|--------|---------|
| Revenues                                                               |   |    |                                            |   |   |    |
|   Rental property revenues                                   |   | $       | 14,405                                          |   |   | $       | 14,057 |   |
|   Management and other fees                                  |   |    | 242                                             |   |   |    | 240 |   |
|     Total revenues                                 |   |    | 14,647                                          |   |   |    | 14,297 |   |
|                                                                   |   |    |                                            |   |   |    |   |   |
| Expenses                                                               |   |    |                                            |   |   |    |   |   |
|   Rental property operating expenses                         |   |    | 6,944                                           |   |   |    | 7,200 |   |
|   General, administrative, selling, and marketing            |   |    | 569                                             |   |   |    | 978 |   |
|   Write-down of assets                                       |   |    | 839                                             |   |   |    | - |   |
|   Depreciation expense                                       |   |    | -                                               |   |   |    | 2,318 |   |
|     Total expenses                                 |   |    | 8,352                                           |   |   |    | 10,496 |   |
|                                                                   |   |    |                                            |   |   |    |   |   |
| Operating Income                                                       |   |    | 6,295                                           |   |   |    | 3,801 |   |
|                                                                   |   |    |                                            |   |   |    |   |   |
| Other expense                                                          |   |    |                                            |   |   |    |   |   |
|   Interest expense                                           |   |    | (3,390                                          | )      |   |    | (3,559 | ) |
| Income before provision (benefit) for income taxes                |   |    | 2,905                                           |   |   |    |     242 |   |
| Provision (benefit) for income taxes                                   |   |    | 617                                             |   |   |    | (275 | ) |
| Income from discontinued operations                               |   |    |   2,288                                    |   |   |    | 517 |   |
|   Noncontrolling interest in consolidated entities           |   |    |         (986 | )      |   |    | (1,198 | )  |
|   Income (loss) from discontinued operations attributable to ACPT |   | $  |     1,302                        |   |   | $  | (681 | )  |

| For the three months ended June 30,                                    |   | 2009    |                                            |   | 2008   |    |
|------------------------------------------------------------------------|--------|---------|-------------------------------------------------|--------|--------|---------|
| Revenues                                                               |   |    |                                            |   |   |    |
|   Rental property revenues                                   |   | $       | 7,238                                           |   |   | $       | 7,060 |   |
|   Management and other fees                                  |   |    | 122                                             |   |   |    | 121 |   |
|     Total revenues                                 |   |    | 7,360                                           |   |   |    | 7,181 |   |
|                                                                   |   |    |                                            |   |   |    |   |   |
| Expenses                                                               |   |    |                                            |   |   |    |   |   |
|   Rental property operating expenses                         |   |    | 3,492                                           |   |   |    | 3,685 |   |
|   General, administrative, selling, and marketing            |   |    | 282                                             |   |   |    | 467 |   |
|   Write-down of assets                                       |   |    | 89                                              |   |   |    | - |   |
|   Depreciation expense                                       |   |    | -                                               |   |   |    | 1,168 |   |
|     Total expenses                                 |   |    | 3,863                                           |   |   |    | 5,320 |   |
|                                                                   |   |    |                                            |   |   |    |   |   |
| Operating Income                                                       |   |    | 3,497                                           |   |   |    | 1,861 |   |
|                                                                   |   |    |                                            |   |   |    |   |   |
| Other expense                                                          |   |    |                                            |   |   |    |   |   |
|   Interest expense                                           |   |    | (1,726                                          | )      |   |    | (1,800 | ) |
| Income before provision (benefit) for income taxes                |   |    | 1,771                                           |   |   |    |     61 |   |
| Provision (benefit) for income taxes                                   |   |    | 249                                             |   |   |    | (44 | ) |
| Income from discontinued operations                               |   |    |   1,522                                    |   |   |    | 105 |   |
|   Noncontrolling interest in consolidated entities           |   |    |         (519 | )      |   |    | (467 | )  |
|   Income (loss) from discontinued operations attributable to ACPT |   | $  |     1,003                        |   |   | $  | (362 | )  |

----

Table of Contents 

| (10) | SEGMENT INFORMATION |
|------|---------------------|

|                                                                           |   | For the six months ended |         |
|--------------------------------------------------------------------------------|--------|--------------------------|--------------|
| U.S. Operating Real Estate:                                                    |   | June 30, 2009            |         |   | June 30, 2008 |   |
|                                                                           |   |                     |         |   |   |   |
| Operating revenues                                                             |   | $                        | 16,727       |   |   | $ | 16,683 |   |
| Operating expenses                                                             |   |                     | 7,148        |   |   |   | 7,422 |   |
| Net operating income                                                           |   |                     | 9,579        |   |   |   | 9,261 |   |
|   Management and other fees, substantially all from related entities |   |                     | 47           |   |   |   | 79 |   |
|   General, administrative, selling and marketing                     |   |                     | (859         | ) |   |   | (727 | ) |
|   Depreciation                                                       |   |                     | (2,331       | ) |   |   | (2,529 | ) |
| Operating income                                                               |   |                     | 6,436        |   |   |   | 6,084 |   |
| Other expense                                                                  |   |                     | (4,196       | ) |   |   | (3,868 | ) |
| Income before provision for income taxes                                       |   |                     |   2,240 |   |   |   | 2,216 |   |
| Provision for income taxes                                                     |   |                     |  327    |   |   |   | 446 |   |
| Income  from continuing operations                                   |   |                     | 1,913        |   |   |   | 1,770 |   |
| Discontinued operations                                                        |   |                     | (563         | ) |   |   | (250) |   |
| Net income                                                                     |   | $                        | 1,350        |   |   | $ | 1,520 |   |

----

Table of Contents 

|                                                                           |   | For the three months ended |         |
|--------------------------------------------------------------------------------|--------|----------------------------|--------------|
| U.S. Operating Real Estate:                                                    |   | June 30, 2009         |         |   | June 30, 2008 |   |
|                                                                           |   |                       |         |   |   |   |
| Operating revenues                                                             |   | $                          | 8,432        |   |   | $ | 8,388 |   |
| Operating expenses                                                             |   |                       | 3,561        |   |   |   | 3,748 |   |
| Net operating income                                                           |   |                       | 4,871        |   |   |   | 4,640 |   |
|   Management and other fees, substantially all from related entities |   |                       | 15           |   |   |   | 41 |   |
|   General, administrative, selling and marketing                     |   |                       | (477         | ) |   |   | (390 | ) |
|   Depreciation                                                       |   |                       | (1,172       | ) |   |   | (1,178 | ) |
| Operating income                                                               |   |                       | 3,237        |   |   |   | 3,113 |   |
| Other expense                                                                  |   |                       | (2,107       | ) |   |   | (1,933 | ) |
| Income before provision for income taxes                                       |   |                       |   1,130 |   |   |   | 1,180 |   |
| Provision benefit for income taxes                                             |   |                       |  274    |   |   |   | (93 | )  |
| Income from continuing operations                                         |   |                       | 856          |   |   |   | 1,273 |   |
| Discontinued operations                                                        |   |                       | 33           |   |   |   | (106 | ) |
| Net income                                                                     |   | $                          | 889          |   |   | $ | 1,167 |   |

|                                                               |   | As of        |    |   | As of             |   |
|--------------------------------------------------------------------|--------|--------------|---------|--------|-------------------|--------|
| U.S. Operating Real Estate Balance Sheet:                          |   | June 30,2009 |    |   | December 31, 2008 |   |
| ASSETS                                                             |   |         |    |   |              |   |
| Investments in real estate, net                                    |   | $            | 84,261  |   |              | $      | 75,120 |   |
|                                                               |   |         |    |   |              |   |   |   |
| Cash and cash equivalents                                          |   |         | 6,351   |   |              |   | 7,008 |   |
| Restricted cash and escrow deposits                                |   |         | 9,142   |   |              |   | 6,996 |   |
| Deferred tax assets                                                |   |         | 8,928   |   |              |   | 8,743 |   |
| Deferred charges and other assets, net of amortization             |   |         | 51,496  |   |              |   | 53,049 |   |
| Property and related assets, held for sale                         |   |         | 37,720  |   |              |   | 37,498 |   |
|     Total Assets                               |   | $            | 197,898 |   |              | $      | 188,414 |   |
|                                                               |   |         |    |   |              |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                               |   |         |    |   |              |   |
| LIABILITIES                                                        |   |         |    |   |              |   |   |   |
| Non-recourse debt                                                  |   | $            | 165,385 |   |              | $      | 159,822 |   |
| Recourse debt                                                      |   |         | 251     |   |              |   | 257 |   |
| Other liabilities                                                  |   |         | 10,427  |   |              |   | 6,589 |   |
| Accrued income tax liability-current                               |   |         | (531    | )      |              |   | (1,047 | ) |
| Liabilities related to assets held for sale                        |   |         | 31,230  |   |              |   | 31,310 |   |
|     Total Liabilities                          |   |         | 206,762 |   |              |   | 196,931 |   |
|     Total Shareholders' Equity                 |   |         | (8,864  | )      |              |   | (8,517 | ) |
|     Total Liabilities and Shareholders' Equity |   | $            | 197,898 |   |              | $      | 188,414 |   |

----

Table of Contents 

|                                                                      |   | For the six months ended |   |
|--------------------------------------------------------------------------------|--------|--------------------------|--------|
| Puerto Rican Operating Real Estate:                                            |   | June 30,2009             |   |   | June 30,2008 |   |
|                                                                           |   |                     |   |   |   |   |
| Operating revenues                                                             |   | $                        | 445    |   |   | $ | 196 |   |
| Operating expenses                                                             |   |                     | 335    |   |   |   | 307 |   |
| Net operating income                                                           |   |                     | 110    |   |   |   | (111 | ) |
|   Management and other fees, substantially all from related entities |   |                     | 76     |   |   |   | 74 |   |
|   General, administrative, selling and marketing                     |   |                     | (501   | ) |   |   | (561 | ) |
|   Depreciation                                                       |   |                     | (114   | ) |   |   | (113 | ) |
| Operating loss                                                                 |   |                     | (429   | ) |   |   | (711 | ) |
| Other expense                                                                  |   |                     | (304   | ) |   |   | (308 | ) |
| Loss before (benefit) provision for income taxes                               |   |                     | (733   | ) |   |   | (1,019 | ) |
| (Benefit) provision for income taxes                                           |   |                     | (612   | )  |   |   | 277 |   |
| Loss from continuing operations                                                |   |                     | (121   | ) |   |   | (1,296 | ) |
| Discontinued operations                                                        |   |                     | 2,851  |   |   |   | 767 |   |
| Net income (loss)                                                              |   | $                        | 2,730  |   |   | $ | (529 | ) |

|                                                                           |   | For the three months ended |   |
|--------------------------------------------------------------------------------|--------|----------------------------|--------|
| Puerto Rican Operating Real Estate:                                            |   | June 30,2009               |   |   | June 30,2008 |   |
|                                                                           |   |                       |   |   |   |   |
| Operating revenues                                                             |   | $                          | 245    |   |   | $ | 90 |   |
| Operating expenses                                                             |   |                       | 184    |   |   |   | 151 |   |
| Net operating income                                                           |   |                       | 61     |   |   |   | (61 | ) |
|   Management and other fees, substantially all from related entities |   |                       | 38     |   |   |   | 37 |   |
|   General, administrative, selling and marketing                     |   |                       | (247   | ) |   |   | (294 | ) |
|   Depreciation                                                       |   |                       | (57    | ) |   |   | (56 | ) |
| Operating loss                                                                 |   |                       | (205   | ) |   |   | (374 | ) |
| Other expense                                                                  |   |                       | (113   | ) |   |   | (106 | ) |
| Loss before (benefit) provision for income taxes                               |   |                       | (318   | ) |   |   | (480 | ) |
| (Benefit) provision for income taxes                                           |   |                       | (246   | )  |   |   | 23 |   |
| Loss from continuing operations                                                |   |                       | (72    | ) |   |   | (503 | ) |
| Discontinued operations                                                        |   |                       | 1,489  |   |   |   | 211 |   |
| Net income (loss)                                                              |   | $                          | 1,417  |   |   | $ | (292 | ) |

----

Table of Contents 

|                                                               |   | As of        |    |   | As of             |   |
|--------------------------------------------------------------------|--------|--------------|---------|--------|-------------------|--------|
| Puerto Rican Operating Real Estate Balance Sheet:                  |   | June 30,2009 |    |   | December 31, 2008 |   |
| ASSETS                                                             |   |         |    |   |              |   |
| Investments in real estate                                         |   | $            | 9,409   |   |              | $      | 9,524 |   |
|                                                               |   |         |    |   |              |   |   |   |
| Cash and cash equivalents                                          |   |         | 9,940   |   |              |   | 6,825 |   |
| Restricted cash and escrow deposits                                |   |         | 61      |   |              |   | 103 |   |
| Investments in unconsolidated real estate entities                 |   |         | 6,528   |   |              |   | 6,818 |   |
| Deferred charges and other assets, net of amortization             |   |         | 18,023  |   |              |   | 12,353 |   |
| Property and related assets, held for sale                         |   |         | 59,217  |   |              |   | 56,129 |   |
|     Total Assets                               |   | $            | 103,178 |   |              | $      | 91,752 |   |
|                                                               |   |         |    |   |              |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                               |   |         |    |   |              |   |
| LIABILITIES                                                        |   |         |    |   |              |   |   |   |
| Non-recourse debt                                                  |   | $            | 8,351   |   |              | $      | 8,399 |   |
| Other liabilities                                                  |   |         | 7,549   |   |              |   | 6,801 |   |
| Accrued income tax liability-current                               |   |         | -       |   |              |   | (1 | ) |
| Liabilities related to assets held for sale                        |   |         | 83,774  |   |              |   | 80,502 |   |
|     Total Liabilities                          |   |         | 99,674  |   |              |   | 95,701 |   |
|     Total Shareholders' Equity                 |   |         | 3,504   |   |              |   | (3,949 | ) |
|     Total Liabilities and Shareholders' Equity |   | $            | 103,178 |   |              | $      | 91,752 |   |

|                                                       |   | For the six months ended |   |
|------------------------------------------------------------|--------|--------------------------|--------|
| U.S. Land Development Operations:                          |   | June 30,2009             |   |   | June 30,2008 |   |
| Operating revenues                                         |   |                     |   |   |   |   |
|   Community development - land sales             |   | $                        | 3,529  |   |   | $ | 5,997 |   |
| Operating expenses                                         |   |                     |   |   |   |   |   |   |
|   Cost of land sales                             |   |                     | 2,644  |   |   |   | 4,725 |   |
|   General, administrative, selling and marketing |   |                     | 1,775  |   |   |   | 1,632 |   |
|   Depreciation                                   |   |                     | 3      |   |   |   | 3 |   |
|    Total expenses                           |   |                     | 4,422  |   |   |   | 6,360 |   |
| Operating loss                                             |   |                     | (893   | ) |   |   | (363 | ) |
| Other expense                                              |   |                     | (1,247 | ) |   |   | (1,358 | ) |
| Loss before benefit for income taxes                       |   |                     | (2,140 | ) |   |   | (1,721 | ) |
| Benefit for income taxes                                   |   |                     | (921   | ) |   |   | (827 | ) |
| Net loss                                                   |   | $                        | (1,219 | ) |   | $ | (894 | ) |

----

Table of Contents 

|                                                       |   | For the three months ended |   |
|------------------------------------------------------------|--------|----------------------------|--------|
| U.S. Land Development Operations:                          |   | June 30,2009               |   |   | June 30,2008 |   |
| Operating revenues                                         |   |                       |   |   |   |   |
|   Community development - land sales             |   | $                          | 2,998  |   |   | $ | 4,951 |   |
| Operating expenses                                         |   |                       |   |   |   |   |   |   |
|   Cost of land sales                             |   |                       | 2,198  |   |   |   | 3,822 |   |
|   General, administrative, selling and marketing |   |                       | 763    |   |   |   | 861 |   |
|   Depreciation                                   |   |                       | 1      |   |   |   | 2 |   |
|    Total expenses                           |   |                       | 2,962  |   |   |   | 4,685 |   |
| Operating income                                           |   |                       | 36     |   |   |   | 266 |   |
| Other expense                                              |   |                       | (595   | ) |   |   | (680 | ) |
| Loss before benefit for income taxes                       |   |                       | (559   | ) |   |   | (414 | ) |
| (Benefit) provision for income taxes                       |   |                       | (230   | ) |   |   | 55 |   |
| Net loss                                                   |   | $                          | (329   | ) |   | $ | (469 | ) |

|                                                               |   | As of        |    |   | As of             |   |
|--------------------------------------------------------------------|--------|--------------|---------|--------|-------------------|--------|
| U.S. Land Development Balance Sheet:                               |   | June 30,2009 |    |   | December 31, 2008 |   |
| ASSETS                                                             |   |         |    |   |              |   |
| Investments in real estate                                         |   | $            | 80,534  |   |              | $      | 81,821 |   |
|                                                               |   |         |    |   |              |   |   |   |
| Cash and cash equivalents                                          |   |         | 3,910   |   |              |   | 10,140 |   |
| Restricted cash and escrow deposits                                |   |         | 2,417   |   |              |   | 2,399 |   |
| Deferred tax assets                                                |   |         | 18,692  |   |              |   | 19,151 |   |
| Deferred charges and other assets, net of amortization             |   |         | 2,656   |   |              |   | 1,129 |   |
|     Total Assets                               |   | $            | 108,209 |   |              | $      | 114,640 |   |
|                                                               |   |         |    |   |              |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                               |   |         |    |   |              |   |
| LIABILITIES                                                        |   |         |    |   |              |   |   |   |
| Recourse debt                                                      |   | $            | 34,100  |   |              | $      | 37,542 |   |
| Other liabilities                                                  |   |         | 10,616  |   |              |   | 13,383 |   |
| Payable to U.S. operating real estate segment                      |   |         | 39,419  |   |              |   | 38,305 |   |
| Accrued income tax liability-current                               |   |         | 14,549  |   |              |   | 15,803 |   |
|     Total Liabilities                          |   |         | 98,684  |   |              |   | 105,033 |   |
|     Total Shareholders' Equity                 |   |         | 9,525   |   |              |   | 9,607 |   |
|     Total Liabilities and Shareholders' Equity |   | $            | 108,209 |   |              | $      | 114,640 |   |

----

Table of Contents 

|                                                       |   | For the six months ended |   |
|------------------------------------------------------------|--------|--------------------------|--------|
| Puerto Rican Land Development Operations:                  |   | June 30, 2009            |   |   | June 30, 2008 |   |
| Operating revenues                                         |   |                     |   |   |   |   |
|   Homebuilding – home sales                |   | $                        | -      |   |   | $ | 2,982 |   |
| Operating expenses                                         |   |                     |   |   |   |   |   |   |
|   Cost of home sales                             |   |                     | 20     |   |   |   | 2,300 |   |
|   General, administrative, selling and marketing |   |                     | 188    |   |   |   | 182 |   |
|   Total expenses                                 |   |                     | 208    |   |   |   | 2,482 |   |
| Operating (loss) income                                    |   |                     | (208   | ) |   |   | 500 |   |
| Other income                                               |   |                     | 310    |   |   |   | 417 |   |
| Income before provision for income taxes                   |   |                     | 102    |   |   |   | 917 |   |
| Provision for income taxes                                 |   |                     | -      |   |   |   | - |   |
| Net income                                                 |   | $                        | 102    |   |   | $ | 917 |   |

|                                                       |   | For the three months ended |   |
|------------------------------------------------------------|--------|----------------------------|--------|
| Puerto Rican Land Development Operations:                  |   | June 30, 2009              |   |   | June 30, 2008 |   |
| Operating revenues                                         |   |                       |   |   |   |   |
|   Homebuilding – home sales                |   | $                          | -      |   |   | $ | 738 |   |
| Operating expenses                                         |   |                       |   |   |   |   |   |   |
|   Cost of home sales                             |   |                       | 7      |   |   |   | 583 |   |
|   General, administrative, selling and marketing |   |                       | 90     |   |   |   | 87 |   |
|   Total expenses                                 |   |                       | 97     |   |   |   | 670 |   |
| Operating (loss) income                                    |   |                       | (97    | ) |   |   | 68 |   |
| Other income                                               |   |                       | 163    |   |   |   | 148 |   |
| Income before provision for income taxes                   |   |                       | 66     |   |   |   | 216 |   |
| Provision for income taxes                                 |   |                       | -      |   |   |   | - |   |
| Net income                                                 |   | $                          | 66     |   |   | $ | 216 |   |

|                                                               |   | As of        |   |   | As of                  |   |
|--------------------------------------------------------------------|--------|--------------|--------|--------|------------------------|--------|
| Puerto Rican Land Development Balance Sheet:                       |   | June 30,2009 |   |   | December 31, 2008 |   |
| ASSETS                                                             |   |         |   |   |                   |   |
| Investments in real estate                                         |   | $            | 23,298 |   |                   | $      | 20,310 |   |
|                                                               |   |         |   |   |                   |   |   |   |
| Cash and cash equivalents                                          |   |         | 233    |   |                   |   | 61 |   |
| Restricted cash and escrow deposits                                |   |         | -      |   |                   |   | 3 |   |
| Investments in unconsolidated real estate entities                 |   |         | 14,823 |   |                   |   | 14,234 |   |
| Deferred charges and other assets, net of amortization             |   |         | 13,235 |   |                   |   | 13,863 |   |
|     Total Assets                               |   | $            | 51,589 |   |                   | $      | 48,471 |   |
|                                                               |   |         |   |   |                   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                               |   |         |   |   |                   |   |
| LIABILITIES                                                        |   |         |   |   |                   |   |   |   |
| Recourse debt                                                      |   | $            | 6,128  |   |                   | $      | 4,327 |   |
| Accrued income tax liability – current                       |   |         | 315    |   |                   |   | - |   |
| Accrued income tax liability – deferred                      |   |         | 1,508  |   |                   |   | (644 | ) |
| Accounts payable and accrued liabilities                           |   |         | 25,928 |   |                   |   | 24,767 |   |
|     Total Liabilities                          |   |         | 33,879 |   |                   |   | 28,450 |   |
|     Total Shareholders' Equity                 |   |         | 17,710 |   |                   |   | 20,021 |   |
|     Total Liabilities and Shareholders' Equity |   | $            | 51,589 |   |                   | $      | 48,471 |   |

----

Table of Contents 

|                        |   |   Revenues |          |   |   Expenses |   |          |   Operating Income |   |   |  Other Income/(Expense) |   |   | Income Before Provision (Benefit) for Income Taxes |   |    |   Provision (Benefit) for Income Taxes |   |              | Income(Loss) from Continuing Operations |   |   |   DiscontinuedOperations |   |   |  Consolidated Net Income (Loss) |              |
|-----------------------------|--------|----------------------|---------------|--------|----------------------|--------|---------------|------------------------------|--------|--------|------------------------------|--------|--------|----------------------------------------------------|--------|---------|-------------------------------------------------------|--------|-------------------|-----------------------------------------|--------|--------|------------------------------------|--------|--------|--------------------------------------|-------------------|
| Operating Real Estate       |   |                 |          |   |                 |   |          |                         |   |   |                         |   |   |                                               |   |    |                                                  |   |              |                                    |   |   |                               |   |   |                                 |              |
|   U.S.            |   | $                    | 16,908        |   |                 | $      | 10,472        |                         |   | $      | 6,436                        |   |   | $                                                  | (4,196 | )       |                                                  | $      |   2,240      |                                    |   | $      |  327                          |   |   | $                                    | 1,913             |   |   | $ | (563 | ) |   | $ |   1,350 |   |
|   P.R.            |   |                 | 931           |   |                 |   | 1,360         |                         |   |   | (429                         | )      |   |                                               | (304   | )       |                                                  |   | (733              | )                                       |   |   | (612                               | )      |   |                                 | (121              | ) |   |   | 2,851 |   |   |   | 2,730 |   |
| Total Operating Real Estate |   |                 |   17,839 |   |                 |   |   11,832 |                         |   |   |   6,007                 |   |   |                                               | (4,500 | )       |                                                  |   |   1,507 |                                    |   |   | (285                               | )      |   |                                 |   1,792 |   |   |   |        2,288 |   |   |   |  4,080 |   |
| Land Development            |   |                 |          |   |                 |   |          |                         |   |   |                         |   |   |                                               |   |    |                                                  |   |              |                                    |   |   |                               |   |   |                                 |              |   |   |   |   |   |   |   |   |   |
|   U.S.            |   |                 | 3,529         |   |                 |   | 4,422         |                         |   |   | (893                         | )      |   |                                               | (1,247 | )       |                                                  |   | (2,140            | )                                       |   |   | (921                               | )      |   |                                 | (1,219            | ) |   |   | - |   |   |   | (1,219 | ) |
|   P.R.            |   |                 | -             |   |                 |   | 208           |                         |   |   | (208                         | )      |   |                                               | 310    |    |                                                  |   | 102               |                                    |   |   | -                                  |   |   |                                 | 102               |   |   |   | - |   |   |   | 102 |   |
| Total Land Development      |   |                 | 3,529         |   |                 |   | 4,630         |                         |   |   | (1,101                       | )      |   |                                               | (937   | )       |                                                  |   | (2,038            | )                                       |   |   | (921                               | )      |   |                                 | (1,117            | ) |   |   |   |   |   |   | (1,117 | ) |
| Corporate                   |   |                 | -             |   |                 |   | 1,708         |                         |   |   | (1,708                       | )      |   |                                               | (266   | )  |                                                  |   | (1,974            | )                                       |   |   | 136                                |   |   |                                 | (2,110            | ) |   |   | - |   |   |   | (2,110 | ) |
| Intersegment                |   |                 | (13           | )      |                 |   | (571          | )                            |   |   | 558                          |   |   |                                               | 610    |    |                                                  |   | 1,168             |                                    |   |   | 41                                 |   |   |                                 | 1,127             |   |   |   | - |   |   |   | 1,127 |   |
|                        |   | $                    | 21,355        |   |                 | $      | 17,599        |                         |   | $      | 3,756                        |   |   | $                                                  | (5,093 | )       |                                                  | $      | (1,337            | )                                       |   | $      | (1,029                             | )      |   | $                                    | (308              | ) |   | $ |   2,288 |   |   | $ |  1,980 |   |

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|                        |   |   Revenues |          |   |   Expenses |   |          |   Operating Income |   |   |  Other Income/(Expense) |   |   | Income Before Provision (Benefit) for Income Taxes |   |    |   Provision (Benefit) for Income Taxes |   |              | Income(Loss) from Continuing Operations |   |   |   DiscontinuedOperations |    |   |  Consolidated Net Income (Loss) |            |
|-----------------------------|--------|----------------------|---------------|--------|----------------------|--------|---------------|------------------------------|--------|--------|------------------------------|--------|--------|----------------------------------------------------|--------|---------|-------------------------------------------------------|--------|-------------------|-----------------------------------------|--------|--------|------------------------------------|---------|--------|--------------------------------------|-----------------|
| Operating Real Estate       |   |                 |          |   |                 |   |          |                         |   |   |                         |   |   |                                               |   |    |                                                  |   |              |                                    |   |   |                               |    |   |                                 |            |
|   U.S.            |   | $                    | 17,024        |   |                 | $      | 10,940        |                         |   | $      | 6,084                        |   |   | $                                                  | (3,868 | )       |                                                  | $      |   2,216      |                                    |   | $      | 446                                |    |   | $                                    | 1,770           |   |   | $ | (250 | ) |   | $ |   1,520 |   |
|   P.R.            |   |                 | 770           |   |                 |   | 1,481         |                         |   |   | (711                         | )      |   |                                               | (308   | )       |                                                  |   | (1,019            | )                                       |   |   | 277                                |    |   |                                 | (1,296          | ) |   |   | 767 |   |   |   | (529 | )  |
| Total Operating Real Estate |   |                 |   17,794 |   |                 |   |   12,421 |                         |   |   |   5,373                 |   |   |                                               | (4,176 | )       |                                                  |   |   1,197 |                                    |   |   | 723                                |    |   |                                 |   474 |   |   |   |        517 |   |   |   |   991 |   |
| Land Development            |   |                 |          |   |                 |   |          |                         |   |   |                         |   |   |                                               |   |    |                                                  |   |              |                                    |   |   |                               |    |   |                                 |            |   |   |   |   |   |   |   |   |   |
|   U.S.            |   |                 | 5,997         |   |                 |   | 6,360         |                         |   |   | (363                         | )      |   |                                               | (1,358 | )       |                                                  |   | (1,721            | )                                       |   |   | (827                               | )       |   |                                 | (894            | ) |   |   | - |   |   |   | (894 | ) |
|   P.R.            |   |                 | 2,982         |   |                 |   | 2,482         |                         |   |   | 500                          |   |   |                                               | 417    |    |                                                  |   | 917               |                                    |   |   | -                                  |    |   |                                 | 917             |   |   |   | - |   |   |   | 917 |   |
| Total Land Development      |   |                 | 8,979         |   |                 |   | 8,842         |                         |   |   | 137                          |   |   |                                               | (941   | )       |                                                  |   | (804              | )                                       |   |   | (827                               | )       |   |                                 | 23              |   |   |   |   |   |   |   | 23 |   |
| Corporate                   |   |                 | -             |   |                 |   | 2,678         |                         |   |   | (2,678                       | )      |   |                                               | (1,792 | )  |                                                  |   | (4,470            | )                                       |   |   | (178                               | )  |   |                                 | (4,292          | ) |   |   | - |   |   |   | (4,292 | ) |
| Intersegment                |   |                 | (13           | )      |                 |   | (642          | )                            |   |   | 629                          |   |   |                                               | 2,606  |    |                                                  |   | 3,235             |                                    |   |   | 7                                  |    |   |                                 | 3,228           |   |   |   | - |   |   |   | 3,228 |   |
|                        |   | $                    | 26,760        |   |                 | $      | 23,299        |                         |   | $      | 3,461                        |   |   | $                                                  | (4,303 | )       |                                                  | $      | (842              | )                                       |   | $      | (275                               | )       |   | $                                    | (567            | ) |   | $ |   517 |   |   | $ |   (50 | )  |

|                        |   |   Revenues |        |   |   Expenses |   |        |  Operating Income |   |   | Other Income/(Expense) |    |   | Income Before Provision (Benefit) for Income Taxes |   |    | Provision (Benefit) for Income Taxes |   |   | Income(Loss) from Continuing Operations |   |   |   DiscontinuedOperations |    |   |  Consolidated Net Income (Loss) |       |
|-----------------------------|--------|----------------------|-------------|--------|----------------------|--------|-------------|------------------------|--------|--------|------------------------|---------|--------|----------------------------------------------------|--------|---------|-------------------------------------------|--------|--------|-----------------------------------------|--------|--------|------------------------------------|---------|--------|--------------------------------------|------------|
| Operating Real Estate       |   |                 |        |   |                 |   |        |                   |   |   |                   |    |   |                                               |   |    |                                      |   |   |                                    |   |   |                               |    |   |                                 |       |
|   U.S.            |   | $                    | 8,493       |   |                 | $      | 5,256       |                   |   | $      | 3,237                  |    |   | $                                                  | (2,107 | )       |                                      | $      | 1,130  |                                    |   | $      | 274                                |    |   | $                                    | 856        |   |   | $ | 33 |   |   | $ | 889 |   |
|   P.R.            |   |                 | 485         |   |                 |   | 690         |                   |   |   | (205                   | )       |   |                                               | (113   | )       |                                      |   | (318   | )                                       |   |   | (246                               | )  |   |                                 | (72        | ) |   |   |  1,489 |   |   |   | 1,417 |   |
| Total Operating Real Estate |   |                 |  8,978 |   |                 |   | 5,946       |                   |   |   |  3,032            |    |   |                                               | (2,220 | )       |                                      |   | 812    |                                    |   |   |  28                           |    |   |                                 | 784        |   |   |   |  1,522 |   |   |   |     2,306 |   |
| Land Development            |   |                 |        |   |                 |   |        |                   |   |   |                   |    |   |                                               |   |    |                                      |   |   |                                    |   |   |                               |    |   |                                 |       |   |   |   |   |   |   |   |   |   |
|   U.S.            |   |                 | 2,998       |   |                 |   | 2,962       |                   |   |   | 36                     |    |   |                                               | (595   | )       |                                      |   | (559   | )                                       |   |   | (230                               | )       |   |                                 | (329       | ) |   |   | - |   |   |   | (329 | ) |
|   P.R.            |   |                 | -           |   |                 |   | 97          |                   |   |   | (97                    | )  |   |                                               | 163    |    |                                      |   | 66     |                                    |   |   | -                                  |    |   |                                 | 66         |   |   |   | - |   |   |   | 66 |   |
| Total Land Development      |   |                 |  2,998 |   |                 |   |  3,059 |                   |   |   | (61                    | )       |   |                                               | (432   | )       |                                      |   | (493   | )                                       |   |   | (230                               | )       |   |                                 |  (263 | )  |   |   | - |   |   |   | (263 | )  |
| Corporate                   |   |                 | -           |   |                 |   | 811         |                   |   |   | (811                   | )       |   |                                               | (641   | )  |                                      |   | (1,452 | )                                       |   |   | 87                                 |    |   |                                 | (1,539     | ) |   |   | - |   |   |   | (1,539 | ) |
| Intersegment                |   |                 | (7          | )      |                 |   | (300        | )                      |   |   | 293                    |    |   |                                               | 835    |    |                                      |   | 1,128  |                                    |   |   | 255                                |    |   |                                 | 873        |   |   |   | - |   |   |   | 873 |   |
|                        |   | $                    | 11,969      |   |                 | $      | 9,516       |                   |   | $      | 2,453                  |    |   | $                                                  | (2,458 | )       |                                      | $      | (5     | )                                       |   | $      | 140                                |    |   | $                                    | (145       | ) |   | $ |  1,522 |   |   | $ | 1,377 |   |

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|                        |   | Revenues |        |   | Expenses |   |        | Operating Income |   |   | Other Income/(Expense) |   | Income Before Provision (Benefit) for Income Taxes |   | Provision (Benefit) for Income Taxes |    | Income(Loss) from Continuing Operations |   |   DiscontinuedOperations |   |   Consolidated Net Income (Loss) |
|-----------------------------|--------|----------|-------------|--------|----------|--------|-------------|------------------|--------|--------|------------------------|--------|----------------------------------------------------|--------|-------------------------------------------|---------|-----------------------------------------|--------|------------------------------------|--------|--------------------------------------------|
| Operating Real Estate       |   |     |        |   |     |   |        |             |   |   |                   |   |                                               |   |                                      |    |                                    |   |                               |   |                                       |
|   U.S.            |   | $        | 8,565       |   |     | $      | 5,452       |             |   | $      | 3,113                  |   |                                               | $      | (1,933                                    | )       | $                                       | 1,180  |                               | $      | (93                                        | )  | $ | 1,273 |   | $ | (106 | ) | $ | 1,167 |
|   P.R.            |   |     | 371         |   |     |   | 745         |             |   |   | (374                   | )      |                                               |   | (106                                      | )       |                                    | (480   | )                                  |   | 23                                         |   |   | (503 | ) |   |  211 |   |   | (292) |
| Total Operating Real Estate |   |     |  8,936 |   |     |   | 6,197       |             |   |   |  2,739            |   |                                               |   | (2,039                                    | )       |                                    | 700    |                               |   |  (70                                  | )  |   | 770 |   |   |  105 |   |   |     875 |
| Land Development            |   |     |        |   |     |   |        |             |   |   |                   |   |                                               |   |                                      |    |                                    |   |                               |   |                                       |   |   |   |   |   |   |   |   |   |
|   U.S.            |   |     | 4,951       |   |     |   | 4,685       |             |   |   | 266                    |   |                                               |   | (680                                      | )       |                                    | (414   | )                                  |   | 55                                         |   |   | (469 | ) |   | - |   |   | (469) |
|   P.R.            |   |     | 738         |   |     |   | 670         |             |   |   | 68                     |   |                                               |   | 148                                       |    |                                    | 216    |                               |   | -                                          |   |   | 216 |   |   | - |   |   | 216 |
| Total Land Development      |   |     |  5,689 |   |     |   |  5,355 |             |   |   | 334                    |   |                                               |   | (532                                      | )       |                                    | (198   | )                                  |   | 55                                         |   |   |  (253 | )  |   | - |   |   | (253) |
| Corporate                   |   |     | -           |   |     |   | 1,459       |             |   |   | (1,459                 | )      |                                               |   | (2,003                                    | )  |                                    | (3,462 | )                                  |   | 22                                         |   |   | (3,484 | ) |   | - |   |   | (3,484) |
| Intersegment                |   |     | (5          | )      |     |   | (341        | )                |   |   | 336                    |   |                                               |   | 2,401                                     |    |                                    | 2,737  |                               |   | (109                                       | )  |   | 2,846 |   |   | - |   |   | 2,846 |
|                        |   | $        | 14,620      |   |     | $      | 12,670      |             |   | $      | 1,950                  |   |                                               | $      | (2,173                                    | )       | $                                       | (223   | )                                  | $      | (102                                       | ) | $ | (121 | ) | $ |  105 |   | $ | (16) |

|                        |   | Investment in Real Estate |         |   | Total Assets |   |    | Recourse Debt |   |   | Non-recourse Debt |   |   | Total Liabilities |          |
|-----------------------------|--------|---------------------------|--------------|--------|--------------|--------|---------|---------------|--------|--------|-------------------|--------|--------|-------------------|---------------|
| Operating Real Estate       |   |                      |         |   |         |   |    |          |   |   |              |   |   |              |          |
|   U.S.            |   | $                         | 84,261       |   |         | $      | 160,179 |          |   | $      | 251               |   |   | $                 | 165,385       |   |   | $ | 175,532 |   |
|   P.R.            |   |                      | 9,409        |   |         |   | 43,961  |          |   |   | -            |   |   |              | 8,351         |   |   |   | 15,900 |   |
| Total Operating Real Estate |   |                      |  93,670 |   |         |   | 204,140 |          |   |   |  251         |   |   |              |  173,736 |   |   |   |  191,432 |   |
| Land Development            |   |                      |         |   |         |   |    |          |   |   |              |   |   |              |          |   |   |   |   |   |
|   U.S.            |   |                      | 80,534       |   |         |   | 108,209 |          |   |   | 34,100            |   |   |              | -             |   |   |   | 98,684 |   |
|   P.R.            |   |                      | 23,298       |   |         |   | 51,589  |          |   |   | 6,128             |   |   |              | -             |   |   |   | 33,879 |   |
| Total Land Development      |   |                      | 103,832      |   |         |   | 159,798 |          |   |   |  40,228      |   |   |              | -             |   |   |   |  132,563 |   |
| Corporate                   |   |                      | -            |   |         |   | (10,043 | )             |   |   | -                 |   |   |              | -             |   |   |   | (1,344 | )  |
| Intersegment                |   |                      | (2,389       | )      |         |   | (85,526 | )             |   |   | (1,436            | )      |   |              | -             |   |   |   | (74,432 | ) |
| Held for sale               |   |                      | -            |   |         |   | 96,937  |          |   |   | -                 |   |   |              | -             |   |   |   | 115,005 |   |
|                        |   | $                         | 195,113      |   |         | $      | 365,306 |          |   | $      | 39,043            |   |   | $                 | 173,736       |   |   | $ | 363,221 |   |

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|                        |   | Investment in Real Estate |    |   | Total Assets |   |         | Recourse Debt |   |   | Non-recourse Debt |   |   | Total Liabilities |    |
|-----------------------------|--------|---------------------------|---------|--------|--------------|--------|--------------|---------------|--------|--------|-------------------|--------|--------|-------------------|---------|
| Operating Real Estate       |   |                      |    |   |         |   |         |          |   |   |              |   |   |              |    |
|   U.S.            |   | $                         | 75,120  |   |         | $      | 150,916      |          |   | $      | 257               |   |   | $                 | 159,822 |   |   | $ | 165,621 |   |
|   P.R.            |   |                      | 9,524   |   |         |   | 35,623       |          |   |   | -            |   |   |              | 8,399   |   |   |   | 15,199 |   |
| Total Operating Real Estate |   |                      | 84,644  |   |         |   | 186,539      |          |   |   |   257        |   |   |              | 168,221 |   |   |   | 180,820 |   |
| Land Development            |   |                      |    |   |         |   |         |          |   |   |              |   |   |              |    |   |   |   |   |   |
|   U.S.            |   |                      | 81,821  |   |         |   | 114,640      |          |   |   | 37,542            |   |   |              | -       |   |   |   | 105,033 |   |
|   P.R.            |   |                      | 20,310  |   |         |   |  48,471 |          |   |   | 4,327             |   |   |              | -       |   |   |   | 28,450 |   |
| Total Land Development      |   |                      | 102,131 |   |         |   | 163,111      |          |   |   | 41,869            |   |   |              | -       |   |   |   | 133,483 |   |
| Corporate                   |   |                      | -       |   |         |   | 12,663       |          |   |   | -                 |   |   |              | -       |   |   |   | - |   |
| Intersegment                |   |                      | (1,282  | )      |         |   | (100,748     | )             |   |   | (2,710            | )      |   |              | -       |   |   |   | (72,159 | ) |
| Held for Sale               |   |                      | -       |   |         |   | 93,628       |          |   |   | -                 |   |   |              | -       |   |   |   | 111,812 |   |
|                        |   | $                         | 185,493 |   |         | $      | 355,193      |          |   | $      | 39,416            |   |   | $                 | 168,221 |   |   | $ | 353,956 |   |

| (11) | SUPPLEMENTAL CASH FLOW INFORMATION |
|------|------------------------------------|

|                                                                                                                                            |   | 2009    |        |   | 2008   |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-------------|--------|--------|---------|
| Interest paid, net of amounts capitalized of $1,020,000 and $1,246,000.                                                                         |   | $       | 9,279       |   |   | $       | 7,790 |   |
| Income taxes paid                                                                                                                               |   | $       | 82          |   |   | $       | 161 |   |
| Non-cash investing activity:Purchases of rental projects under construction or development included in accounts payable and accrued liabilities |   | $  | 2,281  |   |   | $  | 429  |   |

| (12) | SHARE GRANTS AND APPRECIATION RIGHTS   |
|------|---------------------------------------------|

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| (13) | EARNINGS PER SHARE |
|------|--------------------|

| (14) | SUBSEQUENT EVENTS |
|------|-------------------|

| ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION |
|---------|--------------------------------------------------------------------------------------|

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| · | our business and investment strategy;                                                                                                                              |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | our projected results of operations;                                                                                                                               |
| · | our ability to manage our anticipated growth;                                                                                                                      |
| · | our ability to obtain future financing arrangements;                                                                                                               |
| · | our estimates relating to, and our ability to pay, future distributions;                                                                                           |
| · | our understanding of our competition and our ability to compete effectively;                                                                                       |
| · | real estate market and industry trends in the United States, and particularly in the St. Charles, Maryland marketplace and its surrounding areas, and Puerto Rico; |
| · | projected capital and operating expenditures;                                                                                                                      |
| · | availability and creditworthiness of current and prospective tenants;                                                                                              |
| · | interest rates; and                                                                                                                                                |
| · | lease rates and terms.                                                                                                                                             |

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|                                                                           |   | For the six months ended |         |
|--------------------------------------------------------------------------------|--------|--------------------------|--------------|
| U.S. Operating Real Estate:                                                    |   | June 30, 2009            |         |   | June 30, 2008 |   |
|                                                                           |   |                     |         |   |   |   |
| Operating revenues                                                             |   | $                        | 16,727       |   |   | $ | 16,683 |   |
| Operating expenses                                                             |   |                     | 7,148        |   |   |   | 7,422 |   |
| Net operating income                                                           |   |                     | 9,579        |   |   |   | 9,261 |   |
|   Management and other fees, substantially all from related entities |   |                     | 47           |   |   |   | 79 |   |
|   General, administrative, selling and marketing                     |   |                     | (859         | ) |   |   | (727 | ) |
|   Depreciation                                                       |   |                     | (2,331       | ) |   |   | (2,529 | ) |
| Operating income                                                               |   |                     | 6,436        |   |   |   | 6,084 |   |
| Other expense                                                                  |   |                     | (4,196       | ) |   |   | (3,868 | ) |
| Income before provision for income taxes                                       |   |                     |   2,240 |   |   |   | 2,216 |   |
| Provision for income taxes                                                     |   |                     |  327    |   |   |   | 446 |   |
| Income  from continuing operations                                   |   |                     | 1,913        |   |   |   | 1,770 |   |
| Discontinued operations                                                        |   |                     | (563         | ) |   |   | (250) |   |
| Consolidated net income                                                   |   | $                        | 1,350        |   |   | $ | 1,520 |   |
|                                                                           |   |                     |         |   |   |   |   |   |
| Depreciation                                                                   |   |                     | 2,331        |   |   |   | 3,077 |   |
| FFO                                                                            |   | $                        | 3,681        |   |   | $ | 4,597 |   |

|                                                                           |   | For the three months ended |         |
|--------------------------------------------------------------------------------|--------|----------------------------|--------------|
| U.S. Operating Real Estate:                                                    |   | June 30, 2009         |         |   | June 30, 2008 |   |
|                                                                           |   |                       |         |   |   |   |
| Operating revenues                                                             |   | $                          | 8,432        |   |   | $ | 8,388 |   |
| Operating expenses                                                             |   |                       | 3,561        |   |   |   | 3,748 |   |
| Net operating income                                                           |   |                       | 4,871        |   |   |   | 4,640 |   |
|   Management and other fees, substantially all from related entities |   |                       | 15           |   |   |   | 41 |   |
|   General, administrative, selling and marketing                     |   |                       | (477         | ) |   |   | (390 | ) |
|   Depreciation                                                       |   |                       | (1,172       | ) |   |   | (1,178 | ) |
| Operating income                                                               |   |                       | 3,237        |   |   |   | 3,113 |   |
| Other expense                                                                  |   |                       | (2,107       | ) |   |   | (1,933 | ) |
| Income before provision for income taxes                                       |   |                       |   1,130 |   |   |   | 1,180 |   |
| Provision for income taxes                                                     |   |                       |  274    |   |   |   | (93 | )  |
| Income  from continuing operations                                   |   |                       | 856          |   |   |   | 1,273 |   |
| Discontinued operations                                                        |   |                       | 33           |   |   |   | (106 | ) |
| Consolidated net income                                                   |   | $                          | 889          |   |   | $ | 1,167 |   |
|                                                                           |   |                       |         |   |   |   |   |   |
| Depreciation                                                                   |   |                       | 1,171        |   |   |   | 1,454 |   |
| FFO                                                                            |   | $                          | 2,060        |   |   | $ | 2,621 |   |

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|                                                                      |   | For the six months ended |   |
|--------------------------------------------------------------------------------|--------|--------------------------|--------|
| Puerto Rican Operating Real Estate:                                            |   | June 30,2009             |   |   | June 30,2008 |   |
|                                                                           |   |                     |   |   |   |   |
| Operating revenues                                                             |   | $                        | 445    |   |   | $ | 196 |   |
| Operating expenses                                                             |   |                     | 335    |   |   |   | 307 |   |
| Net operating income                                                           |   |                     | 110    |   |   |   | (111 | ) |
|   Management and other fees, substantially all from related entities |   |                     | 76     |   |   |   | 74 |   |
|   General, administrative, selling and marketing                     |   |                     | (501   | ) |   |   | (561 | ) |
|   Depreciation                                                       |   |                     | (114   | ) |   |   | (113 | ) |
| Operating loss                                                                 |   |                     | (429   | ) |   |   | (711 | ) |
| Other expense                                                                  |   |                     | (304   | ) |   |   | (308 | ) |
| Loss before (benefit) provision for income taxes                               |   |                     | (733   | ) |   |   | (1,019 | ) |
| (Benefit) provision for income taxes                                           |   |                     | (612   | )  |   |   | 277 |   |
| Loss from continuing operations                                                |   |                     | (121   | ) |   |   | (1,296 | ) |
| Discontinued operations                                                        |   |                     | 2,851  |   |   |   | 767 |   |
| Consolidated net income (loss)                                                 |   | $                        | 2,730  |   |   | $ | (529 | ) |
|                                                                           |   |                     |   |   |   |   |   |   |
| Depreciation                                                                   |   |                     | 114    |   |   |   | 1,883 |   |
| FFO                                                                            |   | $                        | 2,844  |   |   | $ | 1,354 |   |

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|                                                                           |   | For the three months ended |   |
|--------------------------------------------------------------------------------|--------|----------------------------|--------|
| Puerto Rican Operating Real Estate:                                            |   | June 30,2009               |   |   | June 30,2008 |   |
|                                                                           |   |                       |   |   |   |   |
| Operating revenues                                                             |   | $                          | 245    |   |   | $ | 90 |   |
| Operating expenses                                                             |   |                       | 184    |   |   |   | 151 |   |
| Net operating income                                                           |   |                       | 61     |   |   |   | (61 | ) |
|   Management and other fees, substantially all from related entities |   |                       | 38     |   |   |   | 37 |   |
|   General, administrative, selling and marketing                     |   |                       | (247   | ) |   |   | (294 | ) |
|   Depreciation                                                       |   |                       | (57    | ) |   |   | (56 | ) |
| Operating loss                                                                 |   |                       | (205   | ) |   |   | (374 | ) |
| Other expense                                                                  |   |                       | (113   | ) |   |   | (106 | ) |
| Loss before (benefit) provision for income taxes                               |   |                       | (318   | ) |   |   | (480 | ) |
| (Benefit) provision for income taxes                                           |   |                       | (246   | )  |   |   | 23 |   |
| Loss from continuing operations                                                |   |                       | (72    | ) |   |   | (503 | ) |
| Discontinued operations                                                        |   |                       | 1,489  |   |   |   | 211 |   |
| Consolidated net income (loss)                                                 |   | $                          | 1,417  |   |   | $ | (292 | ) |
|                                                                           |   |                       |   |   |   |   |   |   |
| Depreciation                                                                   |   |                       | 57     |   |   |   | 948 |   |
| FFO                                                                            |   | $                          | 1,474  |   |   | $ | 656 |   |

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|                                                       |   | For the six months ended |   |
|------------------------------------------------------------|--------|--------------------------|--------|
|                                                       |   | June 30,2009             |   |   | June 30, 2008 |   |
| Operating revenues                                         |   |                     |   |   |   |   |
|   Community development - land sales             |   | $                        | 3,529  |   |   | $ | 5,997 |   |
| Operating expenses                                         |   |                     |   |   |   |   |   |   |
|   Cost of land sales                             |   |                     | 2,644  |   |   |   | 4,725 |   |
|   General, administrative, selling and marketing |   |                     | 1,775  |   |   |   | 1,632 |   |
|   Depreciation                                   |   |                     | 3      |   |   |   | 3 |   |
|    Total expenses                           |   |                     | 4,422  |   |   |   | 6,360 |   |
| Operating losses                                           |   |                     | (893   | ) |   |   | (363 | ) |
| Other expenses                                             |   |                     | (1,247 | ) |   |   | (1,358 | ) |
| Loss before (benefit) provision for income taxes      |   |                     | (2,140 | ) |   |   | (1,721 | ) |
| (Benefit) provision for income taxes                  |   |                     | (921   | ) |   |   | (827 | ) |
| Net loss                                                   |   | $                        | (1,219 | ) |   | $ | (894 | ) |

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|                                                       |   | For the three months ended |   |
|------------------------------------------------------------|--------|----------------------------|--------|
|                                                       |   | June 30,2009               |   |   | June 30, 2008 |   |
| Operating revenues                                         |   |                       |   |   |   |   |
|   Community development - land sales             |   | $                          | 2,998  |   |   | $ | 4,951 |   |
| Operating expenses                                         |   |                       |   |   |   |   |   |   |
|   Cost of land sales                             |   |                       | 2,198  |   |   |   | 3,822 |   |
|   General, administrative, selling and marketing |   |                       | 763    |   |   |   | 861 |   |
|   Depreciation                                   |   |                       | 1      |   |   |   | 2 |   |
|    Total expenses                           |   |                       | 2,962  |   |   |   | 4,685 |   |
| Operating income                                           |   |                       | 36     |   |   |   | 266 |   |
| Other expenses                                             |   |                       | (595   | ) |   |   | (680 | ) |
| Loss before benefit for income taxes                       |   |                       | (559   | ) |   |   | (414 | ) |
| Benefit for income taxes                                   |   |                       | (230   | ) |   |   | 55 |   |
| Net loss                                                   |   | $                          | (329   | ) |   | $ | (469 | ) |

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|                                                       |   | For the six months ended |   |
|------------------------------------------------------------|--------|--------------------------|--------|
|                                                       |   | June 30,2009             |   |   | June 30,2008 |   |
| Operating revenues                                         |   |                     |   |   |   |   |
|   Homebuilding – home sales                |   | $                        | -      |   |   | $ | 2,982 |   |
| Operating expenses                                         |   |                     |   |   |   |   |   |   |
|   Cost of home sales                             |   |                     | 20     |   |   |   | 2,300 |   |
|   General, administrative, selling and marketing |   |                     | 188    |   |   |   | 182 |   |
|   Total expenses                                 |   |                     | 208    |   |   |   | 2,482 |   |
| Operating (loss) income                                    |   |                     | (208   | ) |   |   | 500 |   |
| Other income                                               |   |                     | 310    |   |   |   | 417 |   |
| Income before provision for income taxes              |   |                     | 102    |   |   |   | 917 |   |
| Provision for income taxes                                 |   |                     | -      |   |   |   | - |   |
| Net income                                                 |   | $                        | 102    |   |   | $ | 917 |   |

|                                                       |   | For the three months ended |   |
|------------------------------------------------------------|--------|----------------------------|--------|
|                                                       |   | June 30,2009               |   |   | June 30,2008 |   |
| Operating revenues                                         |   |                       |   |   |   |   |
|   Homebuilding – home sales                |   | $                          | -      |   |   | $ | 738 |   |
| Operating expenses                                         |   |                       |   |   |   |   |   |   |
|   Cost of home sales                             |   |                       | 7      |   |   |   | 583 |   |
|   General, administrative, selling and marketing |   |                       | 90     |   |   |   | 87 |   |
|   Total expenses                                 |   |                       | 97     |   |   |   | 670 |   |
| Operating (loss) income                                    |   |                       | (97    | ) |   |   | 68 |   |
| Other income                                               |   |                       | 163    |   |   |   | 148 |   |
| Income before provision for income taxes              |   |                       | 66     |   |   |   | 216 |   |
| Provision for income taxes                                 |   |                       | -      |   |   |   | - |   |
| Net income                                                 |   | $                          | 66     |   |   | $ | 216 |   |

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|                                         |   | Six Months Ended June 30, |    |
|----------------------------------------------|--------|---------------------------|---------|
|                                         |   | 2009                      |    |   | 2008 |
| Operating Activities                         |   | $                         | 1,425   |   |   | $ | (1,009 | ) |
| Investing Activities                         |   |                      | (11,286 | ) |   |   | (4,082 | ) |
| Financing Activities                         |   |                      | 6,334   |   |   |   | 2,310 |   |
|     Net Decrease in Cash |   | $                         | (3,527  | ) |   | $ | (2,781 | ) |

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| ITEM 4(T). | CONTROLS AND PROCEDURES |
|------------|-------------------------|

|    |              |   |
|---------|-------------------|--------|
| PART II | OTHER INFORMATION |   |
|    |              |
| ITEM 1. | LEGAL PROCEEDINGS |

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| ITEM 1A. | RISK FACTORS |
|----------|--------------|

| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
|---------|-------------------------------------------------------------|

| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
|---------|---------------------------------|

| ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
|---------|-----------------------------------------------------|

| Trustee                                   |                   Term |   |            Votes For |      |   |        Votes Withheld |
|-------------------------------------------|------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|-----------|--------|-----------------------------------------------------|
| Thomas E. Green                           | 2012 Annual Meeting                                                                                              |   |                                                                   | 4,737,400 |   |                                                |   | 550 |
| Antonio Ginorio                           | 2012 Annual Meeting                                                                                              |   |                                                                   | 4,737,500 |   |                                                |   | 550 |
| Stephen K. Griessel                       | 2012 Annual Meeting                                                                                              |   |                                                                   | 4,737,200 |   |                                                |   | 550 |
|                                      |                                                                                                             |   |                                                                   |      |   |                                                |   |   |
| Other Items                               |                                                                                                             |   |                                                                   |      |   |                                                |   |   |
| Amended and Restated Declaration of Trust |                                                                                                             |   |                                                                   | 4,972,900 |   |                                                |   | 9,900 |
| 2009 Share Incentive Plan                 |                                                                                                             |   |                                                                   | 3,077,400 |   |                                                |   | 1,662,300 |

| ITEM 5. | OTHER INFORMATION |
|---------|-------------------|

| ITEM 6. | EXHIBITS |
|---------|----------|

| (A)    | Exhibits                                                           |
|--------|-------------------------------------------------------------------------|
| 31.1   | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer  |
| 31.2   | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer  |
| 32.1   | Section 1350 Certification of Chief Executive Officer              |
| 32.2   | Section 1350 Certification of Chief Financial Officer              |
|   |                                                                    |

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SIGNATURES 

|                              |   | AMERICAN COMMUNITY PROPERTIES TRUST                                                                                                                                             |   |
|-----------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                              |   |                             (Registrant) |
|                              |   |                                                                                                                                                                            |
| Dated:  August 14, 2009 | By:    | /s/ Stephen Griessel                                                                                                                                                            |   |
|                              |   | Stephen GriesselChief Executive Officer                                                                                                                                         |
|                              |   |                                                                                                                                                                            |
| Dated:  August 14, 2009 | By:    | /s/ Matthew M. Martin                                                                                                                                                           |   |
|                              |   | Matthew M. MartinChief Financial Officer                                                                                                                              |

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